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

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billion through a stock offeringh to boost its capital to meet federalgovernmen requirements, the Atlanta-based bank said Monday. The Atlanta-basex bank wants to sell 108 millio sharesat $13 a share. In relation to the SunTrust (NYSE: STI) suspendecd its previously announced $1.25 billiom “at the market” offer, which raised $260 million. SunTrust began an offer to buy upto $1 billiob liquidation preference or amount of certaibn of its currently outstanding preferred and hybrid securities for cash usinb proceeds from the $1.4 billionm equity offering. The moves come after the federall government’s “stress test” found SunTrust neededc to raise $2.
2 billion in capital. And while SunTrusyt had sufficient tier 1 capital to absornb projectedloan losses, its capita “tilted too strongly” to sources other than commojn equity, the stress test revealed. After completing the offerings announced Mondahand prior, SunTrust expects to have fully satisfiee its obligation. "Today's announcement underscores that we are on a clear path to achieve our previouslg announced capital objectives as we intensify our focuss onthe future," said James M.
Well III, SunTrust chairman and CEO, in a Wells also noted completion ofthe company's capital-related initiatived will boost its ability to upon regulatory approval and at the appropriate preferred stock gotten through participation in the U.S. Treasury's Capitapl Purchase Plan.