Regency CentersCorp. is selling 4,350,000 shares of its common stock in anunderwritten public offering.

Based on the company's closing stock price of $84.16 on July11, gross proceeds are estimated at $421.0 million, including the full exerciseof a 652,000-share overallotment option.

Net proceeds from the offering, along with available cashbalances, will go toward redeeming the company's outstanding $300 million 5.875%senior unsecured notes due June 15, 2017, including a required make-wholepremium.

A part of the net proceeds is also planned to be used tosettle in full forward starting swaps with notional amounts of $220 million,while any remaining net proceeds are likely to be used to fund investments andfor general corporate purposes.

According to Regency Centers, the swaps were originallyplanned for a proposed new debt issuance in 2017 to refinance the notes nowtargeted for redemption.

The company expects the make-whole premium and swapssettlement to aggregate roughly $58 million.

While the company does not expect its core FFO to beaffected as a result of these one-time charges, it projects the combinedone-time charges to slash its per-share net income attributable to commonstockholders and NAREIT FFO by some 58 cents in the third quarter.

Regency Centers also noted that the estimated impacts toper-share amounts for core FFO, net income and NAREIT FFO do not include theinterest savings for the rest of 2016 as a result of the redemption of thenotes.

Bank of America Merrill Lynch and Wells Fargo Securities areserving as joint book-running managers for the offering.