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Regency Centers (REG) Prices $600M Notes, Boosts Flexibility

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Regency Centers Corporation (REG - Free Report) recently announced the pricing of the company’s 3.70% senior unsecured notes worth $600 million, through its operating partnership Regency Centers, L.P. The notes are priced at 99.805%.

The move is a strategic fit as it will bolster financial flexibility. The company intends to utilize net proceeds from the offering to enhance its liquidity, reduce outstanding balances under its line of credit and for general corporate needs, which can include the repayment of part of its remaining debt.

The newly-issued debt security will mature on Jun 15, 2030. Interest on the notes will be paid semi-annually on Jun 15 and Dec 15. The first payment is scheduled to be paid on Dec 15, 2020.

Regency Centers’ efforts to bolster its liquidity in these trying times and tap the debt market amid a low interest-rate environment are a strategic fit.

Moreover, per its recent earnings release, the company exited first-quarter 2020 with total liquidity of $1.3 billion. This comprised $735 million of cash balance and $545 million available under its revolving credit facility.

For first-quarter 2020, Regency Centers’ same-property NOI was hurt by known bankruptcy move-outs and a higher uncollectible lease income due to the coronavirus pandemic.

Over the past 12 months, shares of this Zacks Rank #4 (Sell) company have depreciated 38.5% compared with the industry's fall of 31.7%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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