Summary
JPMorgan Chase & Co. (JPM) has announced the redemption of all its outstanding Series W Preferred Stock. This action, scheduled for September 1, 2019, involves 35,200,000 depositary shares, each representing a 1/400th interest in a share of the 6.30% Non-Cumulative Preferred Stock, Series W. The redemption is an optional exercise of provisions within the governing documents and will be financed using the company's existing cash reserves. This redemption is a strategic financial decision by JPM. Investors holding the Series W Preferred Stock will receive their liquidation preference of $10,000 per share, plus any accrued and unpaid dividends up to the redemption date. The company's use of available cash indicates a strong liquidity position and potentially a desire to streamline its capital structure or reduce future dividend payments associated with this specific series of preferred stock.
Key Highlights
- 1JPMorgan Chase & Co. is redeeming all outstanding Series W Preferred Stock.
- 2The redemption date is set for September 1, 2019.
- 335,200,000 depositary shares, representing the Series W Preferred Stock, are being redeemed.
- 4The Series W Preferred Stock carries a 6.30% dividend rate.
- 5The redemption is funded by available cash, suggesting strong liquidity.
- 6This is an optional redemption, exercised according to the stock's governing provisions.
- 7A press release dated August 2, 2019, provides further details and is attached as an exhibit.