BIRMINGHAM, Ala. (AP) — Regions Financial Corp. says it has agreed to sell Morgan Keegan & Co. Inc. to Raymond James Financial Inc. for $930 million.
Morgan Keegan, one of the nation's leading underwriters of municipal bonds, will pay Regions a dividend of $250 million before closing, resulting in total proceeds to Regions of $1.18 billion.
The deal is expected to close in the first quarter.
Raymond James' Fixed Income and Public Finance businesses will be based in Memphis, Tenn., where Morgan Keegan is currently headquartered. Raymond James will continue to operate a regional support center in Memphis as well.
Regions expects to record an impairment charge of between $575 million to $745 million for the fourth quarter of 2011.