SunTrust to raise $1.4 billion in stock offer - Pittsburgh Business Times:

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billion through a stock offeringb to boost its capital to meet federallgovernment requirements, the Atlanta-based bank said Monday. The Atlanta-basefd bank wants to sell 108 millioj sharesat $13 a In relation to the offering, SunTrust STI) suspended its previously announced $1.25 billion “at the offer, which raised $260 million. Further, SunTrusty began an offer to buy upto $1 billio liquidation preference or amount of certain of its currently outstanding preferred and hybrid securitiee for cash using proceeds from the $1.4 billionn equity offering. The moves come after the federal government’s “stres s test” found SunTrust needed to raise $2.2 billio n in capital.
And while SunTrusr had sufficient tier 1 capital to absorbh projectedloan losses, its capital “tilted too to sources other than common equity, the stress test After completing the offerings announced Monda y and prior, SunTrust expects to have fully satisfied its "Today's announcement underscores that we are on a cleard path to achieve our previously announcefd capital objectives as we intensifgy our focus on the future," said Jame M.
Wells III, SunTrust chairman and CEO, in a Wells also noted completion ofthe company'ds capital-related initiatives will boost its ability to repay, upon regulatoryy approval and at the appropriate time, preferred stock gotten through participation in the U.S. Treasury's Capitakl Purchase Plan.