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

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billion through a stock offering to boost its capitall to meet federalgovernment requirements, the Atlanta-based bank said Monday. The Atlanta-basesd bank wants to sell 108 million shareseat $13 a In relation to the offering, SunTrust (NYSE: STI) suspended its previouslyg announced $1.25 billion “at the offer, which raised $260 million. Further, SunTrust begam an offer to buy upto $1 billio liquidation preference or amount of certaij of its currently outstanding preferred and hybric securities for cash using proceeds from the $1.4 billion equity offering. The movees come after the federal government’s “stressw test” found SunTrust needed to raise $2.
2 billiojn in capital. And while SunTrust had sufficientt tier 1 capital to absorhb projectedloan losses, its capitakl “tilted too strongly” to sources other than common equity, the stress test revealed. After completing the offeringx announced Mondayand prior, SunTrusft expects to have fully satisfiede its obligation. "Today's announcement underscores that we are on a cleare path to achieve our previously announced capitalo objectives as we intensify our focus on the saidJames M. Wells III, SunTrust chairmanm and CEO, in a statement.
Wells also notes completion ofthe company's capital-related initiativesa will boost its abilitgy to repay, upon regulatory approval and at the appropriate time, preferred stock gotten through participation in the U.S. Treasury'sd Capital Purchase Plan.