Replies to post #687887 on Fannie Mae-No Politics (FNMA)

[Louie_Louie]

Yeah, but what happens if the companies/government issue lower paying dividend prefs that are placed senior to the existing prefs? The prospectus allows this, and dont say no it doesn't because the government has seniors already that cancel the current jps dividend. All they need is to do this and let it run for a few years, pay the new prefs dividends but not the old....what would people of the current jps take for par then?

[CatBirdSeat]

Correct, Par is $1 For All Jr Preferred. Its In The Annual Earnings Reports.

[Donotunderstand]

The Man with No Name passes the test

F and F can call back (redeem) JPS shares at PAR ---- likely on any of them by now - (but one I think runs with a window that opens each 5 years)

F and F can go the market and start buying shares there --- wise if the other choice is to use cash to redeem or call back at PAR

F and F can make an offer ---- saying for example - best and final (only) offer --- at 50% of PAR -- voluntary and we holders can decide to wait for PAR or tender at say 50% if the handwriting looks bad for JPS and common too (hard to look bad for just JPS)

But F and F can not make any owner of JPS tender at any price below PAR