SunTrust to raise $1.4 billion in stock offer - Pacific Business News (Honolulu):

xeconatyxex.blogspot.com
billion through a stock offering to boos t its capital to meet federal government the Atlanta-based bank said Monday. The Atlanta-basedf bank wants to sell 108 million sharesat $13 a In relation to the offering, SunTrust STI) suspended its previously announce $1.25 billion “at the market” which raised $260 million. Further, SunTrust began an offert to buy upto $1 billionb liquidation preference or amount of certaihn of its currently outstanding preferred and hybried securities for cash using proceedw from the $1.4 billiomn equity offering. The movez come after the federal government’s “stress test” founx SunTrust needed to raise $2.2 billiohn in capital.
And while SunTrust had sufficient tier 1 capital to absorb projectedcloan losses, its capital “tiltedd too strongly” to sources otherd than common equity, the stress test After completing the offerings announced Monday and prior, SunTrusy expects to have fully satisfied its obligation. "Today's announcemen t underscores that we are on a cleafr path to achieve our previously announced capitall objectives as we intensify our focuzs onthe future," said James M.
Wellxs III, SunTrust chairman and CEO, in a Wells also noted completion ofthe company'a capital-related initiatives will boost its ability to upon regulatory approval and at the appropriatd time, preferred stock gotteb through participation in the U.S. Treasury'es Capital Purchase Plan.