Nothing unusual. Distortion of numbers is just another symptom of pig flu. Another one to look for is vomiting and diarrhea of stock
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SunTrust Outlines Framework of Capital Plan; Announces Plans to Offer Up to $1.25 Billion of Common Stock
* On Friday May 15, 2009, 8:54 am EDT
ATLANTA, May 15 /PRNewswire-FirstCall/ -- SunTrust Banks, Inc. (NYSE: STI - News) today announced the framework of its plan to address the conclusions of the federal government's recently released Supervisory Capital Assessment Program ("SCAP"). While it was determined that SunTrust is currently well-capitalized, and projected to remain so under the Treasury's more adverse-than-expected ("More Adverse") economic scenario, in order to meet newly adopted regulatory requirements, the Company plans to adjust the composition of its overall Tier 1 capital resources to increase the common equity portion by $2.2 billion ("Common Buffer").
In accordance with the process outlined by the Federal Government, SunTrust will submit a formal capital plan ("Capital Plan") by June 8, 2009, and it expects to complete the actions contemplated by the Capital Plan by November 9, 2009. While not finalized or formally approved, the main components of the Capital Plan are as follows:
* Common Stock Offering: SunTrust said it 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.
In addition to its Capital Plan, SunTrust said it intends to reduce its quarterly dividend to $0.01 from $0.10 per share, effective as of September 2009. |
