American Express says proceeds from $500 million public equity offering could pay back TARP

American Express to offer $500 million in stock

NEW YORK — American Express says it will sell $500 million worth of its common stock in a public offering, and use the proceeds in part to pay back government bailout funds.

The New York-based credit card company says it will use the proceeds for general corporate purposes, including repurchasing some of the $3.4 billion worth of preferred shares it issued to the U.S. Treasury as part of the government’s capital purchase program.

American Express Co. said last month that it was seeking permission to repay the government investment. The Federal Reserve determined the company must conduct a public equity offering as a condition to repurchasing the preferred shares.