December 22, 2008
Synovus (NYSE: SNV), the Columbus-based financial services company, announced today that it has completed the sale of $967.9 million in preferred stock and warrants to the U.S. Treasury as part of the government's Capital Purchase Program.
Synovus issued Treasury 967,870 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, and a 10-year warrant to purchase up to 15,510,737 shares of Synovus' common stock at a strike price of $9.36. Synovus' preliminary approval to participate in the program was announced on Nov. 14.
"We are proud to be selected as one of the banks participating in Treasury's Capital Purchase Program," said Richard Anthony, Chairman and CEO of Synovus. "This capital provides a dimension of strength to the credit system and to our banks during these challenging economic times, and we expect to utilize these funds to further manage our credit losses, enhance lending efforts and invest in growth opportunities."
The Capital Purchase Program, part of the U.S. Treasury Troubled Asset Relief Program (TARP), is designed to encourage U.S. financial institutions to build capital and increase the flow of financing to U.S. businesses and consumers. Treasury has set aside $250 billion dollars to invest in the country's strongest financial institutions.
About Synovus
Synovus is a financial services holding company with more than $34 billion in assets based in Columbus. Synovus provides commercial and retail banking, as well as investment services, to customers through 31 banks, including Bank of North Georgia, 440 ATMs, and other Synovus offices in Georgia, Alabama, South Carolina, Florida and Tennessee. The company focuses on its decentralized customer delivery model, position in high-growth Southeast markets and commitment to being a great place to work to ensure the delivery of unparalleled customer experiences. See Synovus on the Web at www.synovus.com.
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