SunTrust Banks Inc. said Monday that it has scrapped its original plan to sell stock in small blocks in favor of a larger — and presumably quicker — route to raising capital.
The Atlanta banking company abandoned its at-the-market offering after raising roughly one-fifth of a targeted $1.25 billion. In its place, the $179.1 billion-asset company said it will make a $1.4 billion common stock offering.
The moves are part of a broad strategy to raise the $2.2 billion the Treasury Department's stress test said SunTrust needs.
SunTrust also said it would raise $300 million by selling selected investments and it would use some of the funds from the stock offering to repurchase up to $1 billion of preferred and hybrid securities.