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

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billion through a stock offering to boosf its capital to meet federaplgovernment requirements, the Atlanta-based bank said The Atlanta-based bank wantsd to sell 108 million shares at $13 a In relation to the offering, SunTrust (NYSE: STI) suspended its previouslt announced $1.25 billion “at the market” offer, whicgh raised $260 million. SunTrust began an offer to buy upto $1 billiob liquidation preference or amount of certain of its currently outstandinfg preferred and hybrid securities for cash using proceeds from the $1.4 billiojn equity offering. The movew come after the federal government’s “stressd test” found SunTrust needed to raise $2.
2 billion in And while SunTrust had sufficient tier 1 capitalk to absorb projectedloan losses, its capita l “tilted too strongly” to sourceas other than common equity, the stress test After completing the offerings announced Mondat and prior, SunTrust expects to have fully satisfief its obligation. "Today's announcemeny underscores that we are on a clear path to achievse our previously announced capital objectives as we intensifh our focus onthe future," said James M.
Wells III, SunTrusr chairman and CEO, in a Wells also noted completion ofthe company's capital-related initiativesw will boost its ability to repay, upon regulatoryh approval and at the appropriatde time, preferred stock gotten through participation in the U.S. Treasury's Capitall Purchase Plan.