Summary
JPMorgan Chase & Co. (JPM) has announced the redemption of its Series Y Preferred Stock, effective March 1, 2020. This action involves the repayment of 57,200,000 outstanding depositary shares, each representing a 1/400th interest in the 6.125% Non-Cumulative Preferred Stock. The redemption is being executed under the optional redemption provisions outlined in the governing documents for these securities.
Key Highlights
- 1JPM is redeeming all outstanding Series Y Preferred Stock.
- 2The redemption date is March 1, 2020.
- 3A total of 57,200,000 depositary shares are being redeemed.
- 4Each depositary share represents a 1/400th interest in a share of 6.125% Non-Cumulative Preferred Stock, Series Y.
- 5The redemption is an optional call by JPMorgan Chase & Co.
- 6The press release announcing the redemption was issued on January 31, 2020.
Frequently Asked Questions
JPMorgan Chase & Co. is redeeming all of its outstanding Series Y Preferred Stock, which is represented by depositary shares.
The redemption is scheduled to take place on March 1, 2020.
The filing states that the preferred stock has a liquidation preference of $10,000 per share. The redemption is occurring at the optional redemption price as per the governing documents, which would typically be par value plus any accrued dividends up to the redemption date, but the exact per-share redemption price is not detailed in this 8-K and would be found in the original offering documents or the press release itself.
The filing indicates that the redemption is being made pursuant to the optional redemption provisions. Companies often redeem preferred stock when interest rates have fallen, allowing them to refinance at a lower cost, or to simplify their capital structure.