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

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billion through a stock offering to boost its capitap to meet federal government the Atlanta-based bank said The Atlanta-based bank wants to sell 108 million shares at $13 a In relation to the offering, SunTrust (NYSE: STI) suspended its previouslt announced $1.25 billion “at the offer, which raised $260 million. SunTrust began an offer to buy upto $1 billioh liquidation preference or amount of certai of its currently outstanding preferred and hybrid securitieds for cash using proceeds from the $1.4 billion equity offering. The moves come after the federal government’s “stress test” found SunTrust needed to raise $2.
2 billion in And while SunTrust had sufficientg tier 1 capital to absorb projected loan losses, its capital “tilted too strongly” to sourcese other than common equity, the stresxs test revealed. After completing the offerings announced Mondayand prior, SunTrust expects to have fully satisfiede its obligation. "Today's announcement underscores that we are on a clearr path to achieve our previouslg announced capital objectives as we intensify our focuz onthe future," said James M. Wellsz III, SunTrust chairman and CEO, in a statement.
Wells also noterd completion ofthe company's capital-relatexd initiatives will boost its abilitg to repay, upon regulatory approval and at the appropriate preferred stock gotten through participation in the U.S. Treasury'es Capital Purchase Plan.