Replies to post #687893 on Fannie Mae-No Politics (FNMA)

[godzirra]

Par value has no meaning here, it's liquidation preference that matters. You can review the Fannie Mae Preferred prospectus for each outstanding issuance here:

https://www.fanniemae.com/about-us/investor-relations/stock-information

Per the Series F prospectus (ticker symbol FNMAP) the relevant excerpts are as follows:

Securities Offered: 12,000,000 shares (assuming the Underwriters do not exercise their overallotment option) of Variable Rate Non-Cumulative Preferred Stock, Series F, no par value, with a stated value and liquidation preference of $50 per share.

Preferences: The Preferred Stock will be entitled to a preference, both as to dividends and upon liquidation, over the common stock (and any other junior stock) of Fannie Mae. The Preferred Stock will rank equally, both as to dividends and upon liquidation, with all other currently outstanding series of Fannie Mae preferred stock.

Optional Redemption: On March 31, 2002 and on March 31 every two years thereafter, Fannie Mae will have the option to redeem the Preferred Stock, in whole or in part, at the redemption price of $50 per share plus the amount that would otherwise be payable as the dividend for the quarterly dividend period ending on the redemption date.

Liquidation Rights: In the event of any dissolution or liquidation of Fannie Mae, holders of the Preferred Stock will be entitled to receive, out of any assets available for distribution to stockholders, $50 per share plus the dividend for the then-current quarterly dividend period accrued through the liquidation payment date.

The contract pretty much lays it out in black and white. Preferred has to be paid before common receives anything and Fannie Mae can't redeem for under liquidation preference.

[stockprofitter]

Wow thanks!

And with accelerated redemption on the table now it’s a scary thought owning Preferred.

[Donotunderstand]

https://www.quantumonline.com/


that - is the online bible for JPS - I believe

so I will be back - after I look up the first one

[Donotunderstand]

QUANTUMONLINE.COM SECURITY DESCRIPTION: Freddie Mac (Federal Home Loan Mortgage Corp.), 1996 Variable Rate Noncumulative Perpetual Preferred Stock, liquidation preference $50 per share, redeemable at the issuer's option on or after 6/30/2001 at $50 per share plus declared and unpaid dividends, and with no stated maturity. Variable rate noncumulative distributions are reset quarterly and paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record on approximately the 15th day of the month in which the payment is made (NOTE: the ex-dividend date is one business day prior to the record date). The dividend rate resets quarterly and is equal to the sum of the three-month London Interbank Offered Rate (LIBOR) rate plus one percent divided by 1.377, and is capped at 9.00 percent. Dividends paid by the preferred are eligible for the 15% tax rate on dividends under normal holding restrictions and are also eligible for the dividends received deduction for corporate holders. In regards to payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.