SunTrust Banks (STI) Announces Plan To Address Capital Buffer Shortfall, Selling $1.25B In Stock, Cutting Dividend
SunTrust Banks, Inc. (NYSE: STI) announced the framework of its plan to address the conclusions of the government's stress test that it need to increase the common equity buffer by $2.2 billion.
To address this the company plans to:
To address this the company plans to:
- Common Stock Offering: Will sell up to $1.25 billion of common stock from time to time through an "at-the-market" offering. Morgan Stanley is acting as the Company's sales agent for the offering.
- Internal Actions: SunTrust has several opportunities to generate additional common equity, including through the sale of selected securities and other asset dispositions. At this time, these actions are expected to generate approximately $300 million of Tier 1 common equity. The Company is analyzing additional actions that may increase the amount of internally generated capital.
- Other Steps: In addition, SunTrust has over $3.3 billion of preferred and hybrid securities outstanding, and it may pursue private and/or public transactions to exchange certain of these Tier 1 securities for common stock.
You May Also Be Interested In
- UPDATE: CORRECTION: MOCON, Inc. (MOCO) Declares $0.105 Quarterly Dividend; 2.7% Yield
- UPDATE: SAP's (SAP) America Unit to Buy Ariba (ARBA) for $45/Share
- SunTrust Named "Export Lender of the Year" by U.S. Small Business Administration for Third Straight Year
Create E-mail Alert Related Categories
Dividends, Equity Offerings, Hot ListRelated Entities
Morgan Stanley, DividendSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
