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Regency Centers launches public offering of 4,350,000 common shares


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Regency Centers launches public offering of 4,350,000 common shares

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.