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

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That’s up from the previously announcedd “at the market” offering of $750 million. The Cleveland-based company said the shares were sold inan “at the offering, meaning there will be no fixed price and sharew will be issued to the markey over a period of time, at KeyCorp’s discretion. The sharesa are covered by a shelf registratioh already on file withthe U.S. Securitiesd and Exchange Commission. has been named sale s agent. KeyCorp (NYSE: KEY), which is parent to , said the sale is the “firstf leg” of its action plan for increasing its Tier 1 commohequity capital. On May 7, the company said it needede to increase Tier 1 capitalby $1.
8 billionm in order to satisfy the requirementsz of the federal government’s “stress The government is asking the larges banks to hold additional capital buffere against a “more adverse than economic scenario. Although KeyCorp meets the regulatory requirements forbeinfg “well-capitalized” today, with capital in excess of all requiree regulatory measures, the stress test determined that under the “what-if” scenari of a much harsher economic the Cleveland bank would be best servedd by raising the level of its Tier 1 With the completion of the offering, Key will have raisesd about $1.3 billion of the $1.
8 Key said further exchanges of its Series A Convertiblse Preferred Stock and trust preferred securitiesx for its common shares, along with additional securitiews and other asset will fund the balance. “I is our intention to be in a positionj to repay the TARP Capital Purchase Program investmen t as promptlyas permitted,” said Henry Meyed III, KeyCorp CEO. KeyCorp has regional headquartersin Albany, N.Y., and operates about 50 KeyBank branches in the area.