Summary
JPMorgan Chase & Co. (JPM) filed an 8-K on July 29, 2021, to report on the issuance of new preferred stock. Specifically, the company issued 200,000 shares of its 4.20% Non-Cumulative Preferred Stock, Series MM. These shares were deposited against the delivery of 80,000,000 depositary shares, each representing a 1/400th interest in a share of the preferred stock. This issuance was made under a previously effective registration statement. The Series MM Preferred Stock carries a liquidation preference of $10,000 per share and a fixed dividend rate of 4.20%. A key provision for investors to note is that the company's ability to pay dividends or make distributions on its common stock or other junior/parity preferred stock is restricted if it fails to declare dividends on the Series MM Preferred Stock or make the required liquidation payment. The filing includes various exhibits detailing the terms and legal opinions related to this preferred stock issuance and its associated depositary shares.
Key Highlights
- 1JPM completed the issuance of 200,000 shares of 4.20% Non-Cumulative Preferred Stock, Series MM.
- 2The preferred stock has a liquidation preference of $10,000 per share.
- 380,000,000 depositary shares were issued, each representing a 1/400th interest in a share of Series MM Preferred Stock.
- 4Dividends on the Series MM Preferred Stock are non-cumulative.
- 5Restrictions on common stock and junior/parity preferred stock dividend payments apply if Series MM dividends are not declared or paid.
- 6The issuance was conducted under the company's effective Registration Statement on Form S-3.
- 7The filing includes detailed exhibits on the Certificate of Designations, Deposit Agreement, and legal opinions.