Upon completion of the offering, Key will have issued 205,438,975 shares at an average price of $4.87 per share. With the completion of this offering, KeyCorp will have raised approximately $1.3 billion of $1.8 billion in additional common equity as it moves to adjust its capital mix as required by the Supervisory Capital Assessment Program (SCAP) buffer set by the US Department of the Treasury and Federal banking regulators.
The $1.3 billion total includes exchanges of approximately $154 million of its Series A Convertible Preferred Stock for its common shares and the sale of select securities and assets providing approximately $127 million in common equity.
Key currently anticipates that further exchanges of its Series A Convertible Preferred Stock and trust preferred securities for its common shares together with additional securities and other asset sales will fund the balance of the $1.8 billion.
Henry L. Meyer III, CEO, KeyCorp, said: We are pleased to have completed this significant portion of our capital activities. We’ll focus now on completing the remaining capital activities which will fortify Key should the economy deteriorate later this year and these conditions persist through 2010. It is our intention to be in a position to repay the TARP Capital Purchase Program investment as promptly as permitted.
