Why Is KeyCorp Stock Shooting Higher Today?
Why Is KeyCorp Stock Shooting Higher Today?
KeyCorp (NYSE:KEY) shares are trading higher after the company disclosed a strategic minority investment agreement with The Bank of Nova Scotia (NYSE:BNS).
KeyCorp（紐交所：KEY）股票正在上漲，因爲該公司披露了與Nova Scotia銀行（紐交所：BNS）的戰略少數股權投資協議。
As per the deal, Scotiabank will invest approximately $2.8 billion in KeyCorp, acquiring about 14.9% of common stock at $17.17 per share.
根據協議，Scotiabank將向KeyCorp投資約28億美元，以17.17美元/股收購約14.9%的普通股。
The investment is expected to boost KeyCorp's CET1 capital ratio by 195 basis points to 12.4% and increase tangible book value per share by over 10% as of June 30, 2024.
預計該投資將提高KeyCorp的CET1資本充足率195個點子至12.4%，並將增加每股有形賬面價值10%以上，截至2024年6月30日。
KeyCorp plans to reposition its available-for-sale securities portfolio to enhance profitability and capital strength after the capital raise. This is expected to increase the CET1 capital ratio to 11.3%-11.6%, be accretive to 2025 EPS, and slightly accretive to 2026 EPS.
KeyCorp計劃重新調整其可供出售證券組合，以提高盈利能力和資本實力。此舉預計將將CET1資本充足率提高至11.3%-11.6%，對2025年EPS增長有貢獻，並對2026年EPS略有貢獻。
The pro forma CET1 ratio, including AOCI, should reach 9.1%-9.4%, a 185 to 210 basis point improvement from June 30, 2024, providing a solid buffer for Basel III regulations.
包括AOCI在內的預計CET1比率將從2024年6月30日的7.1%-7.4%提高到9.1%-9.4%，增加185-210個點子，爲巴塞爾III條例提供了堅實的緩衝。
Scotiabank will buy about 163 million shares of KeyCorp in two stages: an initial $0.8 billion investment, giving Scotiabank a 4.9% stake after the Hart-Scott-Rodino (HSR) Act waiting period, followed by an additional $2.0 billion investment, increasing its stake to approximately 14.9% upon Federal Reserve approval.
Scotiabank將分兩個階段買入約1.63億股KeyCorp，即最初的8億美元投資，在Hart-Scott-Rodino（HSR）法案等待期後，Scotiabank將擁有4.9%的股份，隨後進行另外的20億美元投資，獲得聯邦儲備批准後所持股份將增至約14.9%。
The initial purchase is expected to close by the end of August, with the additional purchase, contingent on customary closing conditions and Federal Reserve approval, anticipated in the first quarter of 2025.
預計最初的購買將在8月底前完成，隨之而來的另一筆購買取決於慣例收盤條件和聯邦儲備批准，預計將於2025年第一季度完成。
"Scotiabank approached us with a unique opportunity to raise capital on attractive terms. While we continue to be comfortable with our current capital position, we determined that the investment enables Key to accelerate our well-communicated capital and earnings improvement while bolstering our strategic position," said KeyCorp Chairman and Chief Executive Officer Chris Gorman.
KeyCorp董事長兼首席執行官Chris Gorman表示：「Scotiabank向我們提出了一項獨特的、在有吸引力的條件下籌集資本的機會。雖然我們對目前的資本狀況感到滿意，但我們認爲該投資能加速我們已經明確溝通的資本和收益改善，同時鞏固我們的戰略地位。」
In July, KeyCorp reported second quarter EPS of $0.25, in line with the consensus, and sales of $1.526 billion, surpassing the consensus of $1.525 billion.
7月份，KeyCorp報告了每股收益0.25美元的第二季度，符合共識，銷售額爲15.26億美元，超過共識的15.25億美元。
Price Action: KEY shares are up 17.9% at $17.24 premarket at the last check Monday.
股價表現：截至上週一的最後查看時，關鍵公司的股價在盤前漲了17.9%，報17.24美元。
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譯文內容由第三人軟體翻譯。