The bank said that the transaction follows its completion of a $625m common equity offering and a $1bn debt offering.
KeyCorp chairman and CEO Henry Meyer said the bank is pleased to repay the investment.
"Our patience has enabled us to limit shareholder dilution. Going forward, Key’s strong balance sheet and capital position, improved earnings, and actions we’ve taken to reduce risk and invest in our businesses over the last two years provide the foundation for Key to grow," Meyer said.
The KeyCorp said that it intends to notify the US Treasury shortly of its intent to repurchase the outstanding warrant associated with the TARP Capital Purchase Program, which allows the US Treasury to purchase up to 35,244,361 shares of its common stock.
If Key decides not to repurchase the warrant from the US Treasury or is unable to repurchase the warrant in the secondary market, it may choose instead to repurchase common stock in an amount expected to be sufficient to offset any estimated dilution to Key’s equity that would occur if the warrant were exercised.
