Choose a year:   2015   |   2014   |   2013   |   2012   |   2011   |   2010   |   2009


 
Synovus Announces Completion of $1.1 Billion Aggregate Offerings of Common Stock and Tangible Equity Units
 
 

May 5, 2010 – Synovus Financial Corp. (NYSE: SNV) today announced the successful completion of its previously announced public offerings of 293,250,000 shares of common stock and 13,800,000 Tangible Equity Units, or "tMEDS."  Each tMEDS is a unit comprised of a prepaid stock purchase contract and a subordinated amortizing note issued by Synovus.  Each offering included full exercise by the underwriters of their respective over-allotment options.

Synovus’ $1.1 billion in net proceeds from the offerings, approximately $1.03 billion of which will qualify as tangible common equity and Tier 1 capital, will be used for working capital and general corporate purposes.

“Our successful capital raise creates a strong foundation for Synovus’ future performance as we continue our journey to profitability. Our capital cushion  will provide strategic flexibility to manage through this credit cycle and positions us to take advantage of potential growth opportunities available to us as a significant regional bank in the southeast,” said  Richard E. Anthony, Synovus Chairman and Chief Executive Officer. 

J.P. Morgan Securities Inc. served as the sole book-running manager of both offerings, and KKR Capital Markets LLC and Sandler O’Neill + Partners, L.P. served as co-managers of the common stock offering.

About Synovus

Synovus is a financial services holding company with over $32 billion in assets based in Columbus, Georgia.  Synovus provides commercial and retail banking, as well as investment services, to customers through 327 offices and 461 ATMs in Georgia, Alabama, South Carolina, Florida and Tennessee.  The company focuses on its unique decentralized customer delivery model, position in high-growth Southeast markets and commitment to being a great place to work to ensure unparalleled customer experiences.

Forward-Looking Statements

This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995.  Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements.  A number of important factors could cause actual results to differ materially from those contemplated by the forward- looking statements in this press release and our filings with the Securities and Exchange Commission.  Many of these factors are beyond Synovus’ ability to control or predict.  Factors that could cause actual results to differ materially from those contemplated in this press release and our filings with the Securities and Exchange Commission include: (1) further deterioration in credit quality, particularly in residential construction and development loans, may continue to result in increased non-performing assets and credit losses, which will adversely impact our earnings and capital; (2) declining values of residential real estate may result in further write-downs of assets, which may increase our credit losses and negatively affect our financial results; (3) continuing weakness in the residential real estate environment may negatively impact our ability to liquidate non-performing assets; (4) the impact on our borrowing costs, capital cost and our liquidity due to adverse changes in our current credit ratings; (5) our ability to manage fluctuations in the value of our assets and liabilities to maintain sufficient capital and liquidity to support our operations; (6) restrictions or limitations on access to funds from subsidiaries, thereby restricting our ability to make payments on our obligations or dividend payments; (7) continuing deterioration in general economic conditions and conditions in the financial markets; (8) the risk that the allowance may prove to be inadequate or may be negatively affected by credit risk exposures; (9) changes in the interest rate environment which may increase funding costs and reduce earning assets yields, thus reducing margins; (10) risks associated with the concentration of our non-performing assets in certain geographic regions and with affiliated borrowing groups; (11) the risk that we may be required to seek additional capital to satisfy applicable regulatory standards and pressures; (12) the risk that, as we pursue alternatives to bolster our capital position, such capital may not be available to us on favorable terms, if at all; (13) the impact of recent and proposed changes in governmental policy, laws and regulations, including proposed and recently enacted changes in the regulation of banks and financial institutions, or the interpretation or application thereof, including restrictions, increased capital requirements, limitations and/or penalties arising from banking, securities and insurance laws regulations and examinations; (14) the impact on Synovus’ financial results, reputation and business if Synovus is unable to comply with all applicable federal and state regulations and applicable memoranda of understanding, other supervisory actions and any necessary capital initiatives; (15) risks associated with litigation; (16) the risk that we will not be able to complete the proposed charter consolidation or, if completed, realize the anticipated benefits of the proposed charter consolidation; (17) the volatility of our stock price; (18) the risk that Synovus could have an “ownership change” under Section 382 of the Internal Revenue Code, which could impair Synovus’ ability to timely and fully utilize net operating losses and built-in losses that may exist when such “ownership change” occurs and (19) the other factors set forth in Synovus’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.  We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations.  We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.

 
 
Contact
Patrick A. Reynolds
Title: Director of Investor Relations
Phone: (706) 649-4973