Summary
JPMorgan Chase & Co. (JPM) has filed an 8-K report detailing the issuance of new preferred stock. Specifically, the company issued 300,000 shares of its 6.500% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series OO. These shares are represented by 3,000,000 depositary shares, with each depositary share representing a one-tenth interest in a preferred share. This issuance was completed on February 4, 2025, and was made under the company's effective Registration Statement on Form S-3. The Series OO Preferred Stock carries a liquidation preference of $10,000 per share and has a fixed-rate reset feature. Importantly, the terms of this preferred stock include restrictions on the company's ability to pay dividends on or redeem junior securities if dividends on the Series OO Preferred Stock are not paid. Investors should note that these are non-cumulative preferred shares, meaning any missed dividends are not carried forward.
Key Highlights
- 1JPM has issued 300,000 shares of 6.500% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series OO.
- 2The preferred stock is represented by 3,000,000 depositary shares, each representing a 1/10th interest.
- 3The issuance, effective February 4, 2025, was conducted under a filed registration statement (Form S-3).
- 4The Series OO Preferred Stock has a liquidation preference of $10,000 per share.
- 5Dividends on this preferred stock are non-cumulative, meaning missed payments are not accumulated.
- 6Restrictions will be imposed on payments related to common stock and junior preferred stock if Series OO dividends are not paid.
- 7The filing includes exhibits detailing the Certificate of Designations, Deposit Agreement, and legal opinions.