JPMorgan Chase & Co. on July 31 completed the issuance and sale of 225,000 shares of its fixed-to-floating rate noncumulative preferred stock, series FF.
The transaction was completed pursuant to an underwriting agreement among the company, J.P. Morgan Securities LLC and several other underwriters.
The series FF preferred stock has a par value of $1.00 per share and a liquidation preference of $10,000 per share. The preferred shares were deposited against delivery of depositary receipts evidencing 2,250,000 depositary shares, each representing 0.1 of a share, issued by Computershare Inc., as depositary.
From the issuance date to, but excluding Aug. 1, 2024, JPMorgan will pay dividends at a rate of 5.00% per annum, semiannually in arrears, on Feb. 1 and Aug. 1 of each year, beginning Feb. 1, 2020. From Aug. 1, 2024, through the redemption date, the company will pay dividends at a floating rate equal to the three-month secured overnight financing rate plus a spread of 3.38% per annum, quarterly in arrears, on Feb. 1, May 1, Aug. 1 and Nov. 1 of each year, beginning Nov. 1, 2024.
JPMorgan may redeem the preferred shares on any dividend payment date on or after Aug. 1, 2024, in whole, or from time to time in part, at a redemption price equal to $10,000 per share, plus any declared and unpaid dividends called for redemption up to the redemption date, without accumulation of undeclared dividends. The shares may also be redeemed at any time following notice given within 90 days after a capital treatment event.