SunTrust to raise $1.4 billion in stock offer - Atlanta Business Chronicle:

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billion through a stock offeringf to boost its capital to meet federallgovernment requirements, the Atlanta-based bank said The Atlanta-based bank wants to sell 108 million sharesw at $13 a share. In relation to the SunTrust (NYSE: STI) suspended its previously announced $1.25 billion “at the offer, which raised $260 million. Further, SunTrust began an offee to buy upto $1 billion liquidation preferencw or amount of certain of its currently outstandingf preferred and hybrid securities for cash usin proceeds from the $1.4 billion equity offering. The movesw come after the federal government’s “strese test” found SunTrust needed to raise $2.2 billion in capital.
And whilw SunTrust had sufficient tier 1 capital to absorbb projectedloan losses, its capital “tilted too to sources other than common equity, the stresds test revealed. After completing the offeringsz announced Mondayand prior, SunTrusf expects to have fully satisfiedx its obligation. "Today's announcement underscores that we are on a cleart path to achieve our previously announcecd capital objectives as we intensify our focux onthe future," said James M.
Wellsx III, SunTrust chairman and CEO, in a Wells also noted completion ofthe company'ds capital-related initiatives will boosf its ability to repay, upon regulatorh approval and at the appropriate time, preferrex stock gotten through participation in the U.S. Treasury's Capitapl Purchase Plan.