Three major BHCs raise capital to repay TARP investments; KeyCorp announces "at the market" offering in response to SCAP results

Following last Thursday's publication of the Federal Reserve's Supervisory Capital Assessment Program (SCAP) results for the country's 19 largest U.S. bank holding companies (BHCs), and quickly on the heels of the public offerings undertaken by Morgan Stanley and Wells Fargo this past Friday, three BHCs that were not required by SCAP to raise additional capital separately announced public offerings of common stock to fund their repurchases of preferred stock and related warrants issued to Treasury this past fall as part of Treasury's Capital Purchase Program (CPP):

• BB&T Corporation, which issued approximately $3.13 billion in preferred stock to Treasury, intends to sell approximately $1.5 billion of common stock (plus a 15% over-allotment option) and intends to use the net proceeds of the offering to repurchase from Treasury a portion of Treasury's preferred stock and warrant investment.
• Capital One Financial Corporation, which issued approximately $3.55 billion in preferred stock to Treasury, priced a $1.5 billion offering of common stock at $27.75 per share (an approximate 11.5% discount from Friday's closing price), plus a 15% over-allotment option that, if exercised, would generate an additional $233 million of proceeds. Capital One intends to use the net proceeds of the offering to repurchase a portion of Treasury's preferred stock and related warrant investment.
• U.S. Bancorp, which issued approximately $6.59 billion in preferred stock to Treasury, intends to sell approximately $2.5 billion of common stock (plus a 15% over-allotment option) and intends to use the net proceeds of the offering, along with proceeds from a potential medium-term note offering, to repurchase all of Treasury's preferred stock and warrant investment.

Separately, KeyCorp, which the Federal Reserve recommended raise a SCAP capital buffer of $1.8 billion, announced that it would sell up to $750 million in common stock in an "at the market" offering as a "first leg" of the company's "action plan" for increasing its Tier 1 common equity capital.