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KeyCorp says has generated about 70% of government's requirement - Quick Facts

KeyCorp (KEY) said that it has commenced an offer to exchange common shares of KeyCorp for any and all outstanding shares of KeyCorp's 7.750% Non-Cumulative Perpetual Convertible Preferred Stock, Series A, and a separate offer to exchange common shares of KeyCorp for any and all Trust Preferred Securities of KeyCorp Capital I, KeyCorp Capital II, KeyCorp Capital III and KeyCorp Capital VII.

In connection with the Series A Exchange Offer, for each share of Series A Preferred Stock accepted in accordance with the terms of the exchange offer, KeyCorp will issue a number of its common shares that will be fixed according to an Exchange Ratio which will be determined on the second trading day immediately preceding the expiration date of the offer. The offer is currently expected to expire on Tuesday, June 30, 2009 and the Exchange Ratio would then be fixed on June 26, 2009.

For each share of Series A Preferred Stock tendered (and not subsequently withdrawn), KeyCorp will issue 7.0922 shares plus $35.00 divided by the daily volume-weighted average price of its common shares during the five consecutive trading days ending on June 26, 2009.

For each Trust Preferred Security of KeyCorp Capital II, KeyCorp Capital III or KeyCorp Capital VII tendered on or prior to June 16, 2009 (and not subsequently withdrawn), KeyCorp will issue a number of its common shares equal to the quotient of $850 divided by the Average VWAP. For each Trust Preferred Security of KeyCorp Capital II, KeyCorp Capital III or KeyCorp Capital VII tendered after June 16, 2009 but prior to the expiration date of the offer (and not subsequently withdrawn), KeyCorp will issue a number of its common shares equal to the quotient of $800 divided by the Average VWAP.

KeyCorp also said that it has generated $1.3 billion or approximately 70% of the government's requirement to date.

by RTT Staff Writer

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