Summary
JPMorgan Chase & Co. (JPM) has announced the redemption of a portion of its Series I Preferred Stock. Specifically, 1,696,250 depositary shares, representing a tenth interest in each share of the Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series I, will be redeemed on October 30, 2018. This action involves approximately 28.27% of the total 6,000,000 outstanding depositary shares for this series. The redemption is being carried out using the company's available cash. This move suggests a strategic decision by JPM to manage its capital structure and potentially reduce its preferred stock obligations. Investors should note that this redemption pertains to a specific series of preferred stock and is funded internally, indicating no immediate need for external financing for this particular transaction.
Key Highlights
- 1JPMorgan Chase & Co. (JPM) announced the redemption of 1,696,250 depositary shares related to its Series I Preferred Stock.
- 2The redemption is scheduled to occur on October 30, 2018.
- 3This redemption represents a partial repayment, affecting approximately 28.27% of the total outstanding Series I Preferred Stock depositary shares.
- 4The Series I Preferred Stock is a Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $10,000 per share.
- 5The redemption will be funded using the company's available cash resources.
- 6The action is taken under the optional redemption provisions of the governing documents for the depositary shares and the Series I Preferred Stock.