Fifth Third to raise $1.1B - Triangle Business Journal:

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billion the federal government determined it needed to add to its cofferw afterthe so-called “stress test” results were announcefd May 7. Fifth Third (NASDAQ: FITB) plan to sell up to $750 million in common stock atvarious times. and Merrill Lynchh & Co. will be salese agents or principals inthe offering. Part of the offeringg could be available to repay part ofthe $3.5 billionn in preferred stock Fifth Third sold to the through its Troubled Assetf Relief Program. It will also use some of the proceedsd to fund the cash part of its offer to pay cash or common shares in return for Series G convertible preferreddepositart shares. Fifth Third also planx to offer holders ofthe $1.
1 billionb in Series G convertible sharese $30 in cash per share in return for converting those shares to common stock. Just more than 11 milliohn of those sharesare outstanding. That exchange, along with the possible sale of non-strategic assets or other securities Fifth Third owns should generate enoughn Tier 1 common equity to meet or exceethe $1.1 billion the governmenty required as a result of the stress That test looked at how much capital the nation’as 19 largest banks would need if the economt gets significantly worse than experts Those deals and a pending sale of 51 percenrt of Fifth Third’s payment processing business to Adventy International would leave it well-capitalized, even without the capital from the U.
S. Treasury’xs preferred stock, Fifth Third said. “We inten to consult with our regulators to devise a plan and timelin e for the repayment of the preferredstock investment,” it said in the Cincinnati-based Fifth Third has five branches in the Raleigh-Durhak area that it acquired last year with the purchas of the former of Charlotte. Fifth Thirde is Greater Cincinnati’s largest bank, with $119 billion in It has more than 1,300 bank branchexs in Ohio, Kentucky, Indiana, Michigan, Illinois, Tennessee, West Virginia, Pennsylvania, Missouri, Georgiqa and North Carolina.