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Synovus to redeem $967.87M of TARP preferred stock

Synovus Financial announced its intention to redeem all 967,870 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A, issued to the U.S. Treasury through the Capital Purchase Program established under the Troubled Asset Relief Program, for an aggregate purchase price of $967.87M. Internally available funds (including a $680M dividend from its wholly owned subsidiary, Synovus Bank) will be used to fund over two-thirds of the redemption price. Synovus also announced today the commencement of an underwritten public offering of $185M of its common stock. The shares will be issued pursuant to a prospectus supplement filed as part of a shelf registration statement on Form S-3 filed with the SEC. Synovus intends to use the net proceeds from the common stock offering, together with the net proceeds of a planned $130M preferred stock offering, to fund the balance of the TARP redemption payment.