City National has said that the proceeds from the sale of the offering will qualify as tangible common equity and tier one capital.

Subject to approval from regulators, City National intends to use proceeds from the offering toward the redemption of preferred stock and the repurchase of warrants sold to the US Treasury Department as part of the capital purchase program. The department purchased $400 million of these securities from City National on November 21, 2008.

Credit Suisse Securities USA and Merrill Lynch are book-running managers for this offering, and Sandler O'Neill + Partners is the co-manager. The underwriters will have a 30-day option to purchase as much as 15% of the common stock offering to cover over-allotments.

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