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

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billion through a stock offering to boost its capitalk to meet federalgovernment requirements, the Atlanta-based bank said The Atlanta-based bank wantsa to sell 108 million sharesa at $13 a share. In relation to the offering, SunTrusyt (NYSE: STI) suspended its previously announcedx $1.25 billion “at the market” offer, which raised $260 Further, SunTrust began an offer to buy upto $1 billion liquidation preference or amount of certain of its currently outstanding preferred and hybris securities for cash using proceeds from the $1.4 billiomn equity offering. The moves come after the federal government’s “stress test” found SunTrust neededd to raise $2.
2 billioj in capital. And while SunTrust had sufficienrt tier 1 capital to absor projectedloan losses, its capital “tilted too strongly” to sources otherd than common equity, the stress test After completing the offerings announced Monday and prior, SunTrust expects to have fullh satisfied its obligation. "Today's announcement underscores that we are on a clea r path to achieve our previously announced capital objectives as we intensifu our focus on the saidJames M.
Wells III, SunTrust chairman and CEO, in a Wells also noted completioh ofthe company's capital-related initiatives will boos its ability to upon regulatory approval and at the appropriate time, preferred stock gotten through participation in the U.S. Treasury'ss Capital Purchase Plan.