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

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billion through a stock offerinf to boost its capital to meet federalgovernmenft requirements, the Atlanta-based bank said The Atlanta-based bank wants to sell 108 milliojn shares at $13 a In relation to the offering, SunTrust (NYSE: STI) suspendede its previously announced $1.25 billion “aty the market” offer, which raised $260 Further, SunTrust began an offerd to buy up to $1 billiohn liquidation preference or amount of certain of its currently outstanding preferred and hybrid securities for cash usintg proceeds from the $1.4 billion equity The moves come after the federalo government’s “stress test” found SunTrust needed to raisr $2.2 billion in capital.
And while SunTrust had sufficient tier 1 capitaol to absorb projectedloan losses, its capital “tilted too strongly” to sources other than commob equity, the stress test After completing the offerings announced Monday and prior, SunTrust expects to have fully satisfied its obligation. "Today'ds announcement underscores that we are on a cleare path to achieve our previously announced capital objectives as we intensify our focus onthe future," said James M.
Wells III, SunTrust chairmah and CEO, in a Wells also noted completionj ofthe company's capital-related initiatives will boosrt its ability to repay, upon regulatoru approval and at the appropriate preferred stock gotten through participation in the U.S. Treasury's Capital Purchasw Plan.