* To issue $400 mln shares
* To offer $200 mln tangible equity units
* To exchange shares for notes
* Stock dips 7 pct in after-hours trade
(Adds details, background; updates stock move)
BANGALORE, April 26 Synovus Financial Corp
(SNV.N) will raise $630 million through offerings of shares and
equity units, as well as a common stock exchange program,
easing uncertainties about the company's blueprint to tackle
The troubled lender will offer $400 million of common
stock, and will also offer $200 million of tangible equity
units, it said in a statement.
Synovus also plans to offer to exchange up to 97 million
shares of common stock for any and all outstanding 5.125
percent subordinated notes due 2017.
Saddled with close to a billion dollars in bailout money
that eventually must be repaid and with assets in some of the
worst markets in the country, Synovus has been under pressure
to raise capital soon.
Synovus, which has more than $32 billion in assets, holds
many commercial real estate and construction loans in some of
the worst markets in the country, making credit quality a major
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The new initiatives will add $630 million to the company's
Tier 1 common equity, and will raise its Tier 1 common equity
ratio to 8.5 percent, Synovus said in a statement.
The company also expects to repay the bailout funds with
improvement in credit metrics following the capital raise.
Last week, Synovus posted a net loss available to common
shareholders of $229.8 million, or 47 cents a share, compared
with a loss of $150.9 million, or 46 cents a share, a year
Synovus also adopted a shareholder rights plan to preserve
tax assets and declared a dividend of one preferred stock
purchase right for each outstanding share common stock.
Shares of the Columbus, Georgia-based bank fell 7 percent
to $3.19 in after-hours trade. They closed at $3.44 Monday on
the New York Stock Exchange.
(Reporting by Anurag Kotoky in Bangalore; Editing by Ratul Ray