Summary
JPMorgan Chase & Co. (JPM) announced on October 31, 2017, its intention to redeem all outstanding depositary shares of its 5.50% Non-Cumulative Preferred Stock, Series O, effective December 1, 2017. This redemption involves 50,300,000 depositary shares, each representing a fractional interest in the Series O Preferred Stock with a liquidation preference of $10,000. The company stated that the redemption will be financed using its available cash resources, indicating a strong liquidity position. This strategic move to redeem preferred stock suggests that JPM is likely capitalizing on favorable market conditions or optimizing its capital structure. Investors in the Series O Preferred Stock should note the upcoming redemption date and the terms of the payout. The redemption price will be at par value plus any accrued dividends up to the redemption date, as per the governing documents, allowing the company to potentially reduce its fixed dividend obligations and associated expenses.
Key Highlights
- 1JPMorgan Chase & Co. (JPM) announced the redemption of its 5.50% Non-Cumulative Preferred Stock, Series O.
- 2The redemption is scheduled to occur on December 1, 2017.
- 3All 50,300,000 outstanding depositary shares of Series O Preferred Stock will be redeemed.
- 4Each depositary share represents a 1/400th interest in a share of Series O Preferred Stock with a $10,000 liquidation preference.
- 5The redemption will be funded using the company's available cash.
- 6The redemption is being carried out under the optional redemption provisions of the governing documents.