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

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billion through a stock offerinbg to boost its capital to meet federal government the Atlanta-based bank said Monday. The Atlanta-based bank wants to sell 108 million sharesat $13 a share. In relatiom to the offering, SunTrust (NYSE: STI) suspended its previously announced $1.255 billion “at the market” offer, which raised $260 Further, SunTrust began an offer to buy upto $1 billion liquidation preference or amount of certaimn of its currently outstandinhg preferred and hybrid securities for cash using proceedsw from the $1.4 billion equity The moves come after the federapl government’s “stress test” found SunTrust needed to raise $2.
2 billion in And while SunTrust had sufficien tier 1 capital to absorb projected loan losses, its capitakl “tilted too strongly” to sources other than common the stress test revealed. After completinh the offerings announced Mondayand prior, SunTrust expects to have fullt satisfied its obligation. "Today's announcement underscores that we are on a clearr path to achieve our previously announced capitak objectives as we intensify our focuxs onthe future," said James M.
Wells III, SunTrust chairman and CEO, in a Wells also noted completion ofthe company's capital-related initiativee will boost its ability to upon regulatory approval and at the appropriatee time, preferred stock gotten througjh participation in the U.S. Treasury's Capital Purchaswe Plan.