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

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billion through a stock offerinb to boost its capital to meet federakgovernment requirements, the Atlanta-based bank said Monday. The Atlanta-baseed bank wants to sell 108 million shares at $13 a In relation to the offering, SunTrust (NYSE: STI) suspende d its previously announced $1.25 billiomn “at the market” offer, whicb raised $260 million. Further, SunTrust began an offef to buy upto $1 billion liquidation preference or amount of certain of its currently outstanding preferred and hybrid securities for cash usintg proceeds from the $1.4 billion equity offering. The movez come after the federapl government’s “stress test” found SunTrust neededc to raise $2.
2 billion in capital. And while SunTrus t had sufficient tier 1 capital to absorb projected loan itscapital “tilted too strongly” to sourcews other than common equity, the stressd test revealed. After completing the offerings announcefd Mondayand prior, SunTrust expects to have fully satisfied its "Today's announcement underscores that we are on a cleafr path to achieve our previouslgy announced capital objectives as we intensify our focus on the said James M. Wells III, SunTrust chairmahn and CEO, in a statement.
Wells also noted completion ofthe company'w capital-related initiatives will boost its ability to upon regulatory approval and at the appropriate preferred stock gotten through participation in the U.S. Treasury'sd Capital Purchase Plan.