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Regions Financial plans to raise $1.25 Billion in capital

BIRMINGHAM, Ala. (AP) - Regional bank Regions Financial Corp.
said Wednesday that it plans to raise $1.25 billion in capital to
help meet a $2.5 billion government requirement to buffer itself
against future losses.

The capital will be raised through public offerings of $1 billion common shares and $250 million new mandatory convertible
preferred shares.

The preferred stock will convert into an unspecified number of common shares on Dec. 15, 2010 unless converted earlier by the shareholder or the bank.

Regions said it will give the underwriters a 30-day option to
buy up to an additional 15 percent of the offerings.

The bank also plans to exchange some of its stock for
outstanding trust preferred securities issues by Regions Financing Trust II.

The exchange expires on June 17 unless extended or ended
earlier.

Regions said it plans to raise the remaining capital required by
the Federal Reserve's Supervisory Capital Assessment Program
through various methods, including the possible sale of noncore
assets and businesses as well as potential equity exchanges.

Regions Financial, which runs Regions Bank, has $142 billion in
assets.


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