Morgan Keegan details outlined

Buyer Raymond James expects $930M deal to close by about April 2

Raymond James Financial Inc. expects to take control of Memphis-based Morgan Keegan & Co. by about April 2, says a filing with the U.S. Securities & Exchange Commission.

Raymond James, which is buying the Memphis investment firm for $930 million, filed the report, saying the deal is expected to close “on or around” that date.

Florida-based Raymond James would pay for Morgan Keegan using cash, stock sales and money borrowed from investors. The financial details and April 2 date were outlined in a prospectus the Florida company filed on Tuesday with the SEC.

To borrow money, the company would sell about $600 million worth of senior or subordinated debt securities to investors. Separately, the company will sell 9.5 million shares of common stock it now controls.

A new stock issue would net an estimated $329.4 million if the stock sells at $34.68 per share, the stock’s closing price Tuesday.

Also, three trusts will sell 1 million shares of Raymond James stock they control. Proceeds from this sale will not go to the company, the prospectus says, and instead will benefit the sellers: the Christopher W. James Trust, Robin Ann James Trust, Wendy James Seldon Family Trust.

On Jan. 11, Raymond James agreed to buy the Memphis firm from Alabamabased Regions Financial Corp. On the same day, Raymond James booked $900 million in short-term loans from J.P. Morgan Securities LLC and Jpmorgan Chase Bank to help carry out the transaction, according to the prospectus.

— Ted Evanoff: (901) 529-2292