KeyCorp (KEY) Increases Previously Announced Capital Raise and Successfully Issues $1 Billion of Equity

June 2, 2009 11:22 AM EDT

KeyCorp (NYSE: KEY) announced it has increased the aggregate gross sales price of the common shares to be sold in connection with its previously announced "at-the-market" offering from $750 million to $1.0 billion and that it has successfully issued all $1.0 billion in new common shares.

Upon completion of the offering, Key will have issued 205,438,975 shares at an average price of $4.87 per share.

With the completion of this offering, KeyCorp will have raised approximately $1.3 billion of $1.8 billion in additional common equity as it moves to adjust its capital mix as required by the Supervisory Capital Assessment Program (SCAP) buffer set by the U.S. Department of the Treasury and Federal banking regulators. The $1.3 billion total includes exchanges of approximately $154 million of its Series A Convertible Preferred Stock for its common shares and the sale of select securities and assets providing approximately $127 million in common equity.

Key currently anticipates that further exchanges of its Series A Convertible Preferred Stock and trust preferred securities for its common shares, together with additional securities and other asset sales, will fund the balance of the $1.8 billion.

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