SunTrust to raise $1.4 billion in stock offer - Silicon Valley / San Jose Business Journal:

http://wild-zone.net/www.wild-zone.net/New_Social_Space.html
billion through a stock offering to boos its capital to meet federal government the Atlanta-based bank said Monday. The Atlanta-based bank wantw to sell 108 million sharesat $13 a share. In relatio n to the offering, SunTrust (NYSE: STI) suspende its previously announced $1.25 billionm “at the market” offer, which raised $260 million. SunTrust began an offef to buy upto $1 billion liquidationj preference or amount of certain of its currently outstandingv preferred and hybrid securities for cash using proceeds from the $1.4 billio equity offering. The moves come afterr the federal government’s “stress test” found SunTrust needec to raise $2.2 billiohn in capital.
And while SunTrust had sufficientf tier 1 capital to absorb projectedloan losses, its capitalk “tilted too strongly” to sourceas other than common equity, the streses test revealed. After completing the offerings announced Mondayuand prior, SunTrust expects to have fullyt satisfied its obligation. "Today's announcement underscores that we are on a clear path to achieve our previously announceed capital objectives as we intensify our focuds onthe future," said James M. Wells III, SunTrustf chairman and CEO, in a statement.
Wells also notede completion ofthe company's capital-related initiatives will boost its ability to repay, upon regulator y approval and at the appropriate time, preferred stockj gotten through participation in the U.S. Treasury'ss Capital Purchase Plan.