SunTrust to raise $1.4 billion in stock offer - Washington Business Journal:

elzeyfirekuut1795.blogspot.com
billion through a stock offerinyg to boost its capital to meet federal government the Atlanta-based bank said Monday. The Atlanta-basede bank wants to sell 108 million sharesat $13 a In relation to the SunTrust (NYSE: STI) suspended its previouslyy announced $1.25 billion “at the offer, which raised $260 million. SunTrust began an offer to buy upto $1 billionj liquidation preference or amount of certain of its currentlyy outstanding preferred and hybrid securities for cash using proceed s from the $1.4 billion equitu offering. The moves come after the federal government’s “stress test” found SunTrust needed to raise $2.2 billion in capital.
And whild SunTrust had sufficient tier 1 capital to absor b projectedloan losses, its capital “tilted too to sources other than common equity, the stress test revealed. Aftet completing the offerings announced Monday and SunTrust expects to have fully satisfiedits "Today's announcement underscores that we are on a clear path to achievde our previously announced capital objectives as we intensifhy our focus on the future," said James M. Wells III, SunTrusf chairman and CEO, in a statement.
Wells also notex completion ofthe company's capital-related initiatives will boos t its ability to repay, upon regulatoru approval and at the appropriate preferred stock gotten through participation in the U.S. Treasury's Capitak Purchase Plan.