CORRECTED - CORRECTED-(April 28) First Horizon to suspend cash dividend

(Corrects April 28 story to clarify that the company will suspend its cash dividend after paying it on July 1)

April 28 (Reuters) - First Horizon National Corp (FHN.N) said it will suspend payment of cash dividends, following a planned July 1 payout, and announced a $600 million stock offering to shore up its capital levels.

The largest bank in Tennessee said it will be paying stock dividend, adding the current expected quarterly dividend rate was shares with a value equal to 20 cents per share.

First Horizon's first-quarter profit fell 89 percent hurt by higher provisions and a fall in value of its portfolio. The bank said it intends to reinstate a cash dividend once earnings and other conditions improve sufficiently. (Reporting by Sweta Singh; Editing by Dinesh Nair )