KeyCorp announced Tuesday that 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 to $1 billion, from $750 million, and that it has successfully issued all $1 billion in new common shares.
Upon completion of the offering, the Cleveland banking company will have issued 205,438,975 shares at an average price of $4.87 per share. It also will have raised roughly $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 buffer set by the Treasury Department and federal banking regulators.
The $1.3 billion total includes exchanges of roughly $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 said it expects further exchanges of its Series A convertible preferred stock and trust-preferred securities for its common shares, and additional securities and other asset sales, to fund the balance of the $1.8 billion.