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

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billion through a stock offering to boost its capital to meet federal government the Atlanta-based bank said Monday. The Atlanta-baseed bank wants to sell 108 million sharesat $13 a In relation to the SunTrust (NYSE: STI) suspended its previouslyg announced $1.25 billion “af the market” offer, which raised $260 million. Further, SunTrust beganj an offer to buy upto $1 billiohn liquidation preference or amount of certain of its currentlyy outstanding preferred and hybrid securities for cash usinb proceeds from the $1.4 billionm equity offering. The moves come afte the federal government’s “stress test” found SunTrusty needed to raise $2.2 billion in capital.
And while SunTrusrt had sufficient tier 1 capital to absorbg projectedloan losses, its capitak “tilted too strongly” to sources otherd than common equity, the stress test After completing the offerings announced Mondau and prior, SunTrust expects to have fullh satisfied its obligation. "Today's announcement underscores that we are on a cleaf path to achieve our previously announced capital objectives as we intensify our focux onthe future," said James M. Wells III, SunTrust chairmamn and CEO, in a statement.
Wells also notes completion ofthe company's capital-related initiatives will boosty its ability to repay, upon regulatory approval and at the appropriate time, preferred stock gotten throughn participation in the U.S. Treasury's Capital Purchase