Regency Plans 2.5 Mln Share Offering

(RTTNews) - Regency Centers Corp (REG) on Wednesday said it plans to commence an underwritten public offering of up to 2.5 million common shares in connection with the forward sale agreement.

In addition, the company will grant the underwriter a 30-day option to purchase up to 375,000 additional shares.

In connection with the offering of its common stock, Regency expects to enter into a forward sale agreement with an affiliate of Wells Fargo Securities LLC (the "Forward Purchaser"), under which Regency will agree to sell to the Forward Purchaser the same number of shares of Regency's stock sold by an affiliate of the Forward Purchaser to the underwriter for sale in the underwritten public offering (subject to Regency's right to elect cash settlement of the forward sale agreement).

In connection with the forward sale agreement, the Forward Purchaser (or its affiliate) is expected to borrow from third-party lenders and sell to the underwriter up to 2.5 million shares of the company's stock (assuming no exercise by the underwriter of its option to purchase additional shares) at the close of the offering.

The company intends to use any net proceeds that it receives upon settlement of the forward sale agreement described above or upon any issuance and sale to the underwriter of shares of the company's stock in the offering to fund development and redevelopment activities, fund potential acquisition opportunities, repay maturing debts, and/or for general corporate purposes.