SunTrust to raise $1.4 billion in stock offer - St. Louis Business Journal:

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billion through a stock offering to boost its capitak to meet federalgovernment requirements, the Atlanta-based bank said The Atlanta-based bank wants to sell 108 millioh shares at $13 a share. In relationn to the offering, SunTrust (NYSE: STI) suspended its previousl y announced $1.25 billion “art the market” offer, which raised $260 million. Further, SunTrust began an offeer to buy upto $1 billio liquidation preference or amount of certain of its currently outstandinyg preferred and hybrid securities for cash using proceeds from the $1.4 billionm equity offering. The moves come after the federal government’s “streszs test” found SunTrust needed to raisd $2.
2 billion in capital. And while SunTrust had sufficieng tier 1 capital to absorb projectedloan losses, its capital “tiltedd too strongly” to source s other than common equity, the stress test After completing the offeringss announced Monday and prior, SunTrust expects to have fully satisfied its obligation. "Today's announcement underscores that we are on a cleatr path to achieve our previousl y announced capital objectives as we intensify our focues onthe future," said James M. Wells III, SunTrusgt chairman and CEO, in a statement.
Wells also noted completiohn ofthe company's capital-related initiativese will boost its abilityg to repay, upon regulatory approval and at the appropriate preferred stock gotten through participatiomn in the U.S. Treasury's Capital Purchasse Plan.