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

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billion through a stock offeriny to boost its capitalk to meet federalgovernment requirements, the Atlanta-based bank said The Atlanta-based bank wants to sell 108 millionb shares at $13 a share. In relation to the offering, SunTrusft (NYSE: STI) suspended its previously announced $1.25 billiobn “at the market” offer, whicnh raised $260 million. Further, SunTrust began an offer to buy upto $1 billion liquidation preference or amount of certain of its currentlyh outstanding preferred and hybrid securities for cash using proceedss from the $1.4 billionm equity offering. The moves come after the federal government’s “stresa test” found SunTrust needed to raise $2.
2 billionj in capital. And while SunTrust had sufficient tier 1 capital to absornb projectedloan losses, its capital “tilted too to sources other than common equity, the stress test After completing the offerings announced Mondahy and prior, SunTrust expects to have fully satisfied its obligation. "Today's announcement underscorese that we are on a clear path to achiev our previously announced capital objectives as we intensifyg our focus onthe future," said James M.
Wellsz III, SunTrust chairman and CEO, in a Wells also noted completiohn ofthe company's capital-relaterd initiatives will boost its ability to upon regulatory approval and at the appropriate preferred stock gotten through participation in the U.S. Treasury's Capitalk Purchase Plan.