SunTrust Banks Inc. plans to issue more than $125 million in new debt securities between now and Sept. 30, according to chief financial officer John W. Speigel.

Proceeds will be used to refund $125 million in 10-year notes that Atlanta-based SunTrust issued in 1985. The notes, which carry an 11% coupon, are callable at par on Sept. 30.

"We fully intend to call it," Mr. Spiegel said in an interview. "he new debt issue may be somewhere above $125 million, depending on interest rates and what our needs turn out to be between now and then."

Mr. Spiegel experts the issue to carry a coupon "in the neighborhood of 8%."

"The reason for calling it, of course, is 11% is awfully high, and we can save about [three percentage points] for the next three years by doing that. With interest rates where they are, we're likely to fund it beyond the three years," Mr. Spiegel said.

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