Summary
JPMorgan Chase & Co. (JPM) has filed an 8-K report detailing a significant modification to the rights of security holders concerning BANK ONE Capital III. Specifically, on September 10, 2018, BANK ONE Capital III will be liquidated. This liquidation will result in the cancellation of the 8.750% Preferred Securities and 8.750% Common Securities issued by BANK ONE Capital III. In conjunction with this event, the 8.750% Junior Subordinated Deferrable Interest Debentures, currently held by BANK ONE Capital III and originally issued by JPMorgan Chase & Co. (as successor to Bank One Corporation), will be distributed to the holders of the now-cancelled Trust Preferred Securities. Each $1,000 liquidation amount of Trust Preferred Securities will be exchanged for $1,000 principal amount of these Debentures. Holders of the Trust Common Securities, which are held by JPM, will see their principal amount of Debentures extinguished. No action is required from holders of the Trust Preferred Securities.
Key Highlights
- 1Liquidation of BANK ONE Capital III scheduled for September 10, 2018.
- 2Cancellation of 8.750% Preferred Securities and 8.750% Common Securities issued by BANK ONE Capital III.
- 3Distribution of 8.750% Junior Subordinated Deferrable Interest Debentures (due 2030) to holders of Trust Preferred Securities.
- 4Each $1,000 in liquidation amount of Trust Preferred Securities will be exchanged for $1,000 principal amount of the Debentures.
- 5JPMorgan Chase & Co. will have the principal amount of Debentures held through Trust Common Securities extinguished.
- 6No action is required by holders of the Trust Preferred Securities to facilitate the exchange and cancellation.
- 7The process will be managed through The Depository Trust Company facilities.