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

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billion through a stock offering to boost its capital to meet federalgovernment requirements, the Atlanta-based bank said Monday. The Atlanta-based bank wantds to sell 108 million sharesat $13 a share. In relatiohn to the offering, SunTrust (NYSE: STI) suspended its previously announced $1.256 billion “at the offer, which raised $260 million. Further, SunTrus began an offer to buy upto $1 billiohn liquidation preference or amount of certainh of its currently outstanding preferred and hybrid securities for cash using proceeds from the $1.4 billiobn equity offering. The movee come after the federal government’s “stress test” founs SunTrust needed to raise $2.
2 billion in And while SunTrust had sufficient tier 1 capital to absorh projectedloan losses, its capital “tilted too strongly” to sources othef than common equity, the stress test revealed. Afteer completing the offerings announced Mondayand prior, SunTrusr expects to have fully satisfiec its obligation. "Today's announcement underscores that we are on a cleat path to achieve our previously announced capital objectives as we intensify our focusx onthe future," said James M.
Wellsw III, SunTrust chairman and CEO, in a Wells also noted completion ofthe company's capital-related initiatives will boost its abilityu to repay, upon regulatory approval and at the appropriate preferred stock gotten through participation in the U.S. Treasury'sa Capital Purchase Plan.