 Wysłany: Pon 5:40, 28 Mar 2011 Temat postu: KeyCorp, SunTrust |
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A firmer tone across credit markets Monday is allowing U.S. companies to borrow nearly $6 billion in new deals, including two banks that sought financing to pay back government-bailout funds.KeyCorp (KEY) sold its 10-year senior Tarps unsecured medium-term notes, and SunTrust Banks Inc. (STI) sold a new five-year senior unsecured holding company note with proceeds earmarked to repay funds borrowed under the Troubled Asset Relief Program, or TARP. Those deals follow the Federal Reserve's completion of a second round of stress tests for the nation's 19 largest banks that gave the green light to many institutions seeking to repay government funds issued under the rescue program."We anticipate a flurry of debt issuance from the institutions that have been permitted to take capital actions Tarpsfollowing the completion of the 2011 Comprehensive Capital Analysis and Review," according to Tom Murphy, sector leader and portfolio manager at Columbia Management in Minneapolis.A majority of major banks already repaid TARP borrowings. SunTrust is the last of the major banks to do so. "The timing is simply due to the Fed giving each bank permission to do so," said Anthony Valeri, fixed income strategist at LPL Financial in San Diego, which manages about $280 billion in assets. He said the banks' timing follows "the Fed's seal of approval" and takes advantage of positive sentiment, as the Fed news was good for investors of both bank stocks and bonds. KeyCorp will combine the proceeds from Monday's $1 billion debt offering with the $625 million in Tarps funds it raised through its sale of shares earlier this session and buy back the Series B fixed rate cumulative perpetual preferred stock it issued to the U.S. Treasury under TARP. SunTrust's plan is in the same vein. It plans to repay a portion of its $4.9 billion aid tab with $1 billion each in stock and debt sales.SunTrust sold its $1 billion five-year offering with a risk premium of 160 basis points over Treasurys to yield 3.608%. KeyCorp priced its 10-year with a coupon of 5.10% to offer a risk premium of 180 basis points over Treasurys. Topics related articles： How can I tell them I am not a prostitute? Appian has given us53 the formula of the proscript Cut out the costs |
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