SunTrust to raise $1.4 billion in stock offer - Birmingham 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 wantw to sell 108 million shares at $13 a share. In relatiob to the offering, SunTrust (NYSE: STI) suspended its previouslg announced $1.25 billion “at the market” which raised $260 million. SunTrust began an offer to buy upto $1 billionm liquidation preference or amount of certain of its currently outstandin g preferred and hybrid securities for cash using proceeds from the $1.4 billiohn equity offering. The moves come afterd the federal government’s “stress found SunTrust needed toraise $2.2 billioh in capital.
And while SunTrust had sufficient tier 1 capital to absorbn projectedloan losses, its capitapl “tilted too strongly” to sources other than commom equity, the stress test revealed. After completing the offeringsa announced Mondayand prior, SunTrus t expects to have fully satisfied its "Today's announcement underscores that we are on a clear path to achievw our previously announced capital objectivesa as we intensify our focus on the future," said James M. Welles III, SunTrust chairman and CEO, in a statement.
Wells also noted completion ofthe company'ws capital-related initiatives will boost its ability to upon regulatory approval and at the appropriate time, preferred stock gottenm through participation in the U.S. Treasury'z Capital Purchase Plan.