Regency Centers Prices $400 Million Senior Unsecured Notes Offering

Rhea-AI Summary

Regency Centers Corporation (REG) announced a $400 million public offering of senior unsecured notes due 2034 at a coupon of 5.250%. The Notes will mature on January 15, 2034, and were issued at 99.617% of par value. The company plans to use the net proceeds to reduce outstanding debt and for general corporate purposes.

Insights

Financial Analyst

The pricing of a substantial $400 million public offering of senior unsecured notes by Regency Centers L.P. is a significant move in the corporate finance space. The issuance at 99.617% of par value with a 5.250% coupon is indicative of the current interest rate environment and investor appetite for corporate debt. The use of proceeds to reduce the line of credit balance suggests a strategic approach to debt management, potentially leading to an improved debt profile and interest expense savings in the long run.

Investors should note the maturity date of 2034, which adds a long-term fixed-income security to their portfolio, potentially offering a hedge against interest rate volatility. The semiannual interest payment structure is standard, but the specific rates and terms should be compared with other offerings in the market to assess competitiveness. The involvement of prominent financial institutions as book-running managers and co-managers speaks to the credibility of the offering.

Market Research Analyst

Regency Centers Corporation's move to issue senior unsecured notes reflects broader market trends where companies are looking to lock in longer-term financing amidst fluctuating interest rates. Given the size of the offering, this signals confidence in Regency's financial stability and growth prospects. The allocation of funds towards paying down existing lines of credit and for general corporate purposes may be viewed favorably, as it suggests prudent financial management and a focus on strengthening the balance sheet.

From a market perspective, the potential reduction in interest costs could improve Regency's competitive position in the real estate investment trust (REIT) sector. Investors often scrutinize such financial maneuvers to gauge a company's liquidity and risk profile, which can influence stock performance. The role of high-profile co-managers in the offering may also enhance investor confidence and potentially impact the trading volume and stock price.

Economist

The issuance of senior unsecured notes by Regency Centers L.P. can be seen as a response to macroeconomic conditions. In an environment where interest rates may be rising, securing long-term financing at a fixed rate could be a strategic hedge against future cost of capital increases. The 5.250% coupon rate offers insight into the current cost of borrowing for corporations and will affect the company's interest payments relative to its operational cash flow.

Additionally, the decision to use the proceeds to pay down a line of credit suggests a focus on liquidity management and financial flexibility, which is crucial for companies navigating uncertain economic landscapes. This action may also reflect Regency's anticipation of future economic cycles and their potential impact on the real estate market, credit availability and interest rates. Such strategic financial planning can have long-term implications for the company's growth trajectory and resilience.

JACKSONVILLE, Fla., Jan. 08, 2024 (GLOBE NEWSWIRE) -- Regency Centers Corporation (“Regency,” “Regency Centers,” or the “Company”) (Nasdaq: REG) announced today that its operating partnership, Regency Centers, L.P., has priced a $400 million public offering of senior unsecured notes due 2034 (the “Notes”) under its existing shelf registration filed with the Securities and Exchange Commission (the “SEC”). The Notes will mature on January 15, 2034, and were issued at 99.617% of par value with a coupon of 5.250%. Interest on the Notes will be payable semiannually on January 15 and July 15 of each year, with the first payment due and payable on July 15, 2024.

Regency intends to use the net proceeds of the offering to reduce the outstanding balance on its line of credit and for general corporate purposes, including, but not limited to, the future repayment of outstanding debt. Prior to using any of the net proceeds, the Company may invest the net proceeds in certificates of deposit, interest-bearing short-term investment grade securities or money-market accounts. Settlement of the offering is subject to the satisfaction of customary closing conditions and is expected to occur on January 18, 2024.

BofA Securities, Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, PNC Capital Markets LLC, and TD Securities (USA) LLC are acting as joint book-running managers. Mizuho Securities USA LLC, Regions Securities LLC and Truist Securities, Inc. are acting as senior co-managers. BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, RBC Capital Markets, LLC, and Scotia Capital (USA) Inc. are acting as co-managers.

Regency Centers, L.P. has filed a registration statement (including a prospectus and related prospectus supplement) with the SEC with respect to the offering of the Notes. Before you invest, you should read the prospectus in that registration statement and the prospectus supplement for the offering, as well as the other documents Regency Centers, L.P. has filed with the SEC for more complete information about Regency Centers, L.P. and the offering. You may get these documents for free by visiting EDGAR on the SEC website at http://www.sec.gov. Alternatively, by calling BofA Securities, Inc. at 1-800-294-1322, J.P. Morgan Securities LLC at 1-212-834-4533, U.S. Bancorp Investments, Inc. at 1-877-558-2607, or Wells Fargo Securities, LLC at 1-800-645-3751, such underwriter will arrange to send you the prospectus and the related prospectus supplement if you request it.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Regency Centers Corporation (Nasdaq: REG)

Regency Centers is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member. For more information, please visit RegencyCenters.com.

Forward-Looking Statements
Certain statements in this document regarding anticipated financial, business, legal or other outcomes including business and market conditions, outlook and other similar statements relating to Regency's future events, developments, or financial or operational performance or results, are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as "may," "will," "could," "should," "would," "expect," "estimate," "believe," "intend," "forecast," "project," "plan," "anticipate," "guidance," and other similar language. However, the absence of these or similar words or expressions does not mean a statement is not forward-looking. While we believe these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance these expectations will be attained, and it is possible actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties.

Our operations are subject to a number of risks and uncertainties including, but not limited to, risk factors described in our SEC filings, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2022 ("2022 Form 10-K") under Item 1A. "Risk Factors" and in Part II, Item 1A. "Risk Factors" in subsequent Quarterly Reports on Form 10-Q. When considering an investment in our securities, you should carefully read and consider these risks, together with all other information in our 2022 Form 10-K, subsequent Quarterly Reports on Form 10-Q and our other filings with and submissions to the SEC. If any of the events described in such risk factors actually occur, our business, financial condition or operating results, as well as the market price of our securities, could be materially adversely affected. Forward-looking statements are only as of the date they are made, and Regency undertakes no duty to update its forward-looking statements, whether as a result of new information, future events, or developments otherwise, except as and to the extent required by law.

Christy McElroy
904 598 7616
ChristyMcElroy@regencycenters.com

FAQ

What did Regency Centers Corporation announce?

Regency Centers Corporation announced a $400 million public offering of senior unsecured notes due 2034.

What is the coupon rate of the Notes?

The coupon rate of the Notes is 5.250%.

When will the Notes mature?

The Notes will mature on January 15, 2034.

How much were the Notes issued at?

The Notes were issued at 99.617% of par value.

What does the company plan to do with the net proceeds?

The company plans to use the net proceeds to reduce outstanding debt and for general corporate purposes.