Fannie Mae-No Politics (FNMA)

[Wise Man]

For instance, FNMFO is a series of Convertible JPS with a par value of $100,000 per share.
Instead of Fannie Mae deciding a redemption at a redemption price of $105,000 per share, according to the prospectus, their holders decide to convert to FNMA, and, assuming that there is no other conversion of JPS/SPS or the Warrant exercised (then, same common shares outstanding as today), that would activate its anti-dilution protection provision, the conversion ratio is the one established when it was issued: 1,060.3329 common shares per each FNMFO held.
If it's done today, each $100,000 FNMFO would be converted into $1,424, calculated with Friday's price of $1.33 x1,060.3329 common shares.

Obviously, their holders won't request a conversion and they will wait for Fannie Mae to announce a redemption.
Anti-dilution isn't Anti-loss protection. ROFL.

As commented before, although the prospectus talks about adjusting the Conversion Price, the anti-dilution is about adjusting the Conversion rate.
You can't adjust for changes in price in the common stocks.
The underwriters of this IPO should be investigated.
Let me guess, JPM's Jamie Dimon.