Summary
JPMorgan Chase & Co. (JPM) filed an 8-K report on July 29, 2015, detailing the issuance of its 6.15% Non-Cumulative Preferred Stock, Series BB. This filing primarily concerns the establishment and issuance of this new class of preferred stock, consisting of 115,000 shares, which translate into 46,000,000 depositary shares. Each depositary share represents 1/400th of a preferred share, with a liquidation preference of $10,000 per preferred share. The issuance was completed on July 29, 2015, following a registration statement on Form S-3. This issuance introduces specific dividend payment and liquidation preference terms for the Series BB Preferred Stock. Crucially, the company's ability to pay dividends or make distributions on its common stock or other junior preferred stock is restricted if it fails to declare dividends on the Series BB Preferred Stock or meet its liquidation distribution obligations. Investors should note these terms as they may impact future distributions to common stockholders.
Key Highlights
- 1JPMorgan Chase & Co. issued 115,000 shares of 6.15% Non-Cumulative Preferred Stock, Series BB.
- 2The preferred stock has a liquidation preference of $10,000 per share.
- 3Depositary Receipts were issued representing 46,000,000 depositary shares, with each representing 1/400th of a Series BB Preferred Share.
- 4The issuance occurred on July 29, 2015, under a Form S-3 registration statement.
- 5The Certificate of Designations for the Series BB Preferred Stock was filed with the Delaware Secretary of State on July 28, 2015.
- 6Restrictions on payments to common stockholders exist if dividends on the Series BB Preferred Stock are not declared or liquidation preferences are not met.
- 7This filing details the terms, rights, preferences, and limitations of the new preferred stock series.