Northern Trust raising $1.25B to redeem TARP shares

Chicago’s biggest bank holding company has hired Goldman Sachs & Co. and Morgan Stanley & Co. Inc. to handle the $750-million equity portion of the deal, the bank announced Monday. It also intends to raise about $500 million in senior notes in a registered public offering. Northern Trust will use the proceeds, plus other capital, to redeem the $1.6 billion in preferred shares it sold to the federal government last year under the Troubled Asset Relief Program.