SunTrust Banks Inc. in Atlanta said Friday that it has repurchased more than 4 million warrants it issued to the Treasury Department three years ago as part of its participation in the Troubled Asset Relief Program.
The $172 billion-asset SunTrust received nearly $4.9 billion under the program and repaid the debt in full earlier this year. In a news release, it said that it repurchased the warrants at a price of $2.70 each at a Treasury auction conducted by Deutsche Bank Securities Thursday.
The warrants it acquired represent 67% of the outstanding A warrants. The transaction is expected to close by Wednesday.
"We believe acquiring these warrants is a good investment for our shareholders to the degree that the warrants are retired and potential future shareholder dilution is avoided," SunTrust's Chief Financial Officer Aleem Gillani said in a news release.
