Summary
JPMorgan Chase & Co. (JPM) announced via an 8-K filing on April 29, 2021, its decision to redeem all outstanding depositary shares for its 6.10% Non-Cumulative Preferred Stock, Series AA, and its 6.15% Non-Cumulative Preferred Stock, Series BB. This redemption is set to occur on June 1, 2021. This action involves the redemption of 57,000,000 depositary shares for Series AA Preferred Stock and 46,000,000 depositary shares for Series BB Preferred Stock. The redemption is being executed under the optional redemption provisions outlined in the governing documents for these preferred stock series. Investors holding these specific preferred stock issuances should be aware of the upcoming redemption and its implications for their investment.
Key Highlights
- 1JPM is redeeming all outstanding depositary shares for Series AA and Series BB Preferred Stock.
- 2The redemption date for both preferred stock series is set for June 1, 2021.
- 3The Series AA Preferred Stock has a liquidation preference of $10,000 per share and an annual dividend rate of 6.10%.
- 4The Series BB Preferred Stock also has a liquidation preference of $10,000 per share and an annual dividend rate of 6.15%.
- 5The company is utilizing the optional redemption provisions of the governing documents.
- 6A total of 57,000,000 depositary shares for Series AA and 46,000,000 for Series BB are being redeemed.