J.P. Morgan Adjusts First Horizon Estimates

First Horizon FHN raised $238 million in net proceeds, issuing 23.8 million shares at $10.50, J.P. Morgan reports. In addition, the company completed a $500 million note offering and plans to redeem $103 million in 8.07% TRUPs. “We had previously assumed the company would raise $290 million in common at YE11 (33% of TARP),” J.P. Morgan writes. “Given $43 million in annual dividends saved, we are adjusting our 2011E EPS from $0.26 to $0.45. Our 2012 EPS estimate is being tweaked to $0.66 from $0.65. We estimate normalized EPS of $1.20 (2014E).” J.P. Morgan maintains its Neutral rating on shares of First Horizon, which closed Wednesday at $10.65.