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

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billion through a stock offering to boost its capital to meet federal government the Atlanta-based bank said Monday. The Atlanta-based bank wantas to sell 108 millioh sharesat $13 a share. In relation to the offering, SunTrust STI) suspended its previously announcer $1.25 billion “at the market” offer, which raisedr $260 million. Further, SunTrust began an offedr to buy upto $1 billion liquidation preference or amount of certain of its currently outstandingb preferred and hybrid securities for cash using proceeds from the $1.4 billiojn equity offering. The moves come after the federal government’s “stress test” found SunTrust needed to rais $2.
2 billion in capital. And whilr SunTrust had sufficient tier 1 capitao to absorb projected loan itscapital “tilted too strongly” to sourcew other than common equity, the stress test revealed. After completin g the offerings announced Mondatand prior, SunTrust expects to have fullh satisfied its obligation. "Today's announcement underscores that we are on a clearr path to achieve our previously announced capital objectives as we intensify our focuxs onthe future," said James M. Wells III, SunTrust chairmanm and CEO, in a statement.
Wellws also noted completion ofthe company'as capital-related initiatives will boost its ability to upon regulatory approval and at the appropriate time, preferred stoclk gotten through participation in the U.S. Treasury's Capitak Purchase Plan.