With this transaction complete, the US Treasury no longer holds any investment in KeyCorp under the TARP Capital Purchase Program.
The warrant provided the right to purchase 35,244,361 shares of KeyCorp common stock at $10.64 per share.
Cleveland-based KeyCorp and the US Treasury agreed upon a repurchase price of $70mn for the warrant.
KeyCorp chairman and CEO Henry Meyer said that the repurchase of the warrant completes the US Treasury’s period as an investor under the TARP Capital Purchase Program.
"We are pleased to have this repurchase completed and, as we move forward, we are focused on our relationship strategy and commitment to extraordinary service, which serve as the foundation for everything that we do," Meyer said.
Last month, KeyCorp repurchased $2.5bn of preferred stock issued by the US Department under the TARP program, following the bank’s completion of a $625m common equity offering and a $1bn debt offering.
