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8-K - FORM 8-K - KEYCORP /NEW/ | l42288e8vk.htm |
Exhibit 99.1
News
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KeyCorp | ||
127 Public Square | ||
Cleveland, OH 44114 |
CONTACTS:
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ANALYSTS | MEDIA | ||
Vernon L. Patterson | William C. Murschel | |||
216.689.0520 | 216.471.2885 | |||
Vernon_Patterson@KeyBank.com | William_C_Murschel@KeyBank.com | |||
Christopher F. Sikora | ||||
216.689.3133 | ||||
Chris_F_Sikora@KeyBank.com |
INVESTOR
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KEY MEDIA | |
RELATIONS: www.key.com/ir
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NEWSROOM: www.key.com/newsroom |
FOR IMMEDIATE RELEASE
KEYCORP COMPLETES REPURCHASE OF TARP CAPITAL
U.S. Treasurys $2.5 billion investment in Series B Preferred Stock repaid today
CLEVELAND, Mar. 30, 2011 KeyCorp (NYSE: KEY) announced today that it completed the
repurchase of $2.5 billion of Fixed-Rate Perpetual Preferred Stock, Series B issued to the U.S.
Department of the Treasury as a result of Keys participation in the Capital Purchase Program of
the Troubled Asset Relief Program (TARP).
The transaction follows Keys successful completion of a $625 million common equity offering and a
$1 billion debt offering.
We are pleased to repay the investment, said Henry L. Meyer III, chairman and CEO. Our patience
has enabled us to limit shareholder dilution. Going forward, Keys strong balance sheet and capital
position, improved earnings, and actions weve taken to reduce risk and invest in our businesses
over the last two years provide the foundation for Key to grow.
One of approximately 700 U.S. banks to participate in the Capital Purchase Program, KeyCorp issued
25,000 shares of preferred stock to the U.S. Treasury in late 2008. During the investment period,
KeyCorp paid an aggregate of approximately $297 million in dividends and accrued interest to the
U.S. Treasury.
Key intends to notify the U.S. Treasury shortly of its intent to repurchase the outstanding warrant
associated with the TARP Capital Purchase Program, which allows the U.S. Treasury to purchase up to
35,244,361 shares of its common stock. If Key decides not to repurchase the warrant from the U.S.
Treasury or is unable to repurchase the warrant in the secondary market, it may choose instead to
repurchase common stock in an amount expected to be sufficient to offset any estimated dilution to
Keys equity that would occur if the warrant were exercised.
Cleveland-based KeyCorp (NYSE: KEY) is one of the nations largest bank-based financial services
companies, with assets of approximately $92 billion. Key companies provide investment management,
retail and commercial banking, consumer finance, and investment banking products and services to
individuals and companies throughout the United States and, for certain businesses,
internationally. For more information, visit https://www.key.com/aboutkey.
# # # #
This press release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead
represent only managements current expectations and forecasts regarding future events, many of
which, by their nature, are inherently uncertain and outside of Keys control. Keys actual
results and financial condition may differ, possibly materially, from the anticipated results and
financial condition indicated in these forward-looking statements. Factors that could cause Keys
actual results to differ materially from those described in the forward-looking statements can be
found in Keys Annual Report on Form 10-K for the year ended December 31, 2010, which has been
filed with the SEC and are available on Keys website at www.Key.com/IR and on the SECs website at
www.sec.gov. Forward-looking statements are not guarantees of future performance and should not be
relied upon as representing managements views as of any subsequent date. Key does not undertake
any obligation to update the forward-looking statements to reflect the impact of circumstances or
events that may arise after the date of the forward-looking statements.