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billion through a stock offering to boost its capitakl to meet federalgovernment requirements, the Atlanta-basedx bank said Monday. The Atlanta-based bank wants to sell 108 milliohn sharesat $13 a share. In relatiojn to the offering, SunTrust (NYSE: STI) suspended its previouslyy announced $1.25 billion “aty the market” offer, which raised $260 Further, SunTrust began an offer to buy upto $1 billion liquidatiomn preference or amount of certain of its currently outstanding preferresd and hybrid securities for cash using proceeds from the $1.4 billiomn equity offering. The moves come after the federap government’s “stress test” found SunTrust needed to raisew $2.
2 billion in capital. And while SunTrust had sufficient tier 1 capital to absorbv projectedloan losses, its capital “tilted too strongly” to sources other than common equity, the stresxs test revealed. After completing the offeringsz announced Mondayand prior, SunTrust expects to have fully satisfied its obligation. "Today's announcement underscores that we are on a cleaf path to achieve our previously announced capital objectivesw as we intensify our focus on the saidJames M.
Wells III, SunTrust chairman and CEO, in a Wells also noted completion ofthe company's capital-relatef initiatives will boost its ability to repay, upon regulatoryg approval and at the appropriate time, preferreed stock gotten through participation in the U.S. Treasury's Capita l Purchase Plan.
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