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

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billion through a stock offering to boost its capital to meet federalgovernment requirements, the Atlanta-base bank said Monday. The Atlanta-based bank wants to sell 108 million sharexat $13 a share. In relation to the SunTrust (NYSE: STI) suspended its previously announced $1.254 billion “at the market” offer, which raised $260 Further, SunTrust began an offer to buy upto $1 billionn liquidation preference or amount of certai n of its currently outstanding preferred and hybrid securitiew for cash using proceeds from the $1.4 billiojn equity offering. The moves come after the federal government’s “stresas test” found SunTrust needed to raise $2.
2 billion in capital. And whilre SunTrust had sufficient tier 1 capital to absorhb projectedloan losses, its capital “tilterd too strongly” to sources other than common the stress test revealed. After completing the offering s announced Mondayand prior, SunTrust expects to have fullyh satisfied its obligation. "Today'sx announcement underscores that we are on a clear path to achiev e our previously announced capital objectives as we intensify our focus on the saidJames M. Wells III, SunTrust chairmam and CEO, in a statement.
Wellds also noted completion ofthe company's capital-related initiativezs will boost its ability to repay, upon regulatorgy approval and at the appropriate time, preferred stockl gotten through participation in the U.S. Treasury's Capitaol Purchase Plan.