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JACKSONVILLE, FL-Regency Centers Corp., which calls itself the largest owner, operator and developer of grocery anchored neighborhood shopping centers in the US, has come up with a refinancing strategy that will save the locally based firm $1.98 million per year, according to the company’s prepared statement.

The company says it will accomplish this move by redeeming preferred stock units and by the sale of preferred stock. Regency has priced $125 million of depository shares representing Series 4 Cumulative Preferred Stock. The shares will be redeemable at par at Regency’s election on or after Aug. 31, 2009; will pay a 7.25% annual dividend; and will have a liquidation value of $25 per share.

The first dividend will be payable on Sept. 30 of this year and will be prorated, based on a settlement date of Aug. 31, 2004. Regency will use the proceeds from the depository shares offering to redeem $85 million of Series B, 8.75% Preferred Units and $40 million of Series C, 9% Preferred Units on Sept. 3, according to the company’s statement.

“As a result of the refinancing, future distributions on this $125 million are reduced by $1.98 million annually,” the statement says, without attributing the information to a specific company source.

Citigroup, Merrill Lynch & Co. and Wachovia Securities were joint book-running managers for the Series 4 Preferred Stock offering. Credit Suisse First Boston, Deutsche Bank Securities, Goldman, Sachs & Co., JP Morgan and Raymond James were junior co-managers.

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