The Floridian Boys

[loniee]

looks like KEY has one more step to go through..
..............................................................

KeyCorp Seeks To Swap $1.3 Billion Of Preferred Securities





DOW JONES NEWSWIRES

KeyCorp (KEY) announced offers to exchange $1.3 billion in preferred securities for cash and common stock, a move which is part of the Ohio regional bank's effort to raise common-equity levels by $1.8 billion per the government's recent stress tests.

The holders of the $503.3 million of series A preferred common stock would get 7.0992 common shares and $35 for each preferred share. Those with $797.6 million of preferred-trust securities would receive stock and a dividend if they tender.

KeyCorp said last month, when the stress test results were announced, that exchanging preferred stock for common shares was among the ways it might plug the $1.8 billion hole.

Companies both inside the financial industry, such as Bank of America Corp. (BAC), and outside, including Dow Chemical Co. (DOW) have been swapping preferred securities for common stock, in part to cut dividend payments but also to boost common-equity levels.

KeyCorp wasn't a big subprime player but expanded aggressively into hot markets that became deeply troubled and has grappled with surging loan losses. In April, it swung to a first-quarter loss as it sharply boosted its loan-loss provisions again and cut its quarterly dividend 84% to a nominal 1 cent a share.

The company also received $2.5 billion last fall from the Treasury Department's capital-purchase program.

KeyCorp shares were recently up 4 cents at $4.86. The stock is down 43% this year.

-By Mike Barris and Kevin Kingsbury, Dow Jones Newswires; 201-938-5658; [e-mail]