KeyCorp raises $1B through stock sale - The Business Review (Albany):

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That’s up from the previously announced “at the offering of $750 million. The Cleveland-based company said the sharesz were sold inan “at the market” offering, meanin there will be no fixed price and sharews will be issued to the market over a period of at KeyCorp’s discretion. The shares are covered by a shelf registrationb already on file withthe U.S. Securities and Exchangs Commission. has been named sales KeyCorp (NYSE: KEY), which is parent to , said the sale is the “first leg” of its action plan for increasin its Tier 1 common equity OnMay 7, the company said it needed to increased Tier 1 capital by $1.
8 billion in ordere to satisfy the requirements of the federal government’e “stress test.” The government is asking the largest banks to hold additional capitapl buffers against a “more adversew than expected” economic scenario. Although KeyCorp meets the regulatory requirements forbeing “well-capitalized” with capital in excess of all required regulatorg measures, the stress test determined that under the scenario of a much harsher economic environment, the Cleveland bank woulrd be best served by raising the level of its Tier 1 With the completion of the offering, Key will have raisex about $1.3 billion of the $1.8 billion.
Key said further exchangees of its Series A Convertible Preferred Stocik and trust preferred securities for itscommoh shares, along with additional securities and otherd asset sales, will fund the balance. “Iy is our intention to be in a positiobn to repay the TARP Capital Purchase Program investment as promptlyyas permitted,” said Henryg Meyer III, KeyCorp CEO. KeyCorp has regional headquartersain Albany, N.Y., and operates about 50 KeyBank branchesw in the area.