UPDATE 1-Synovus sells $1 bln of stock, equity units

Wed Apr 28, 2010 9:43pm EDT

* Priced 255 million shares at $2.75/ share

* Priced 12 million tangible equity units at $25/unit

* Synovus shares down to $3 in after-hours trade

NEW YORK, April 28 (Reuters) - U.S. regional bank Synovus Financial Corp (SNV.N) on Wednesday said it sold 255 million common shares and equity units to raise $1 billion of cash.

Shares of the Columbus, Georgia, bank sold for $3.00 in after-hours electronic trade, down from its Wednesday closing price of $3.18 on the New York Stock Exchange.

In addition to selling new stock, generating $668.4 million in net proceeds, Synovus is selling "tangible equity units" that combine a stock purchase contract and subordinated debt. The bank raised $290.1 million in net proceeds from the units.

Underwriters have an option to buy an additional 38.3 million common shares and 1.8 million more equity units.

Proceeds were used for working capital and general purposes.

(Reporting by Joseph A. Giannone)

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