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Fannie Mae, Variable Rate Non-Cumulative Preferred Stock, Series K
Ticker Symbol: FNM-K* CUSIP: 313586851 Exchange: NYSE
* NOTE: This security is no longer trading as of 4/02/2007
Security has been Called for: Monday, April 2, 2007
February 15, 2007 -- Fannie Mae today announced that its Board of Directors has approved the redemption of all eight million outstanding shares of the company's Variable Rate Non-Cumulative Preferred Stock, Series K, with an aggregate stated value of $400 million, in accordance with the Certificate of Designation of Terms of the Series K preferred stock. "Redeeming costly variable-rate preferred stock in this rising rate environment will result in millions of dollars in annual after-tax savings for the Company going forward," said Chief Financial Officer Robert Blakely. "This action is consistent with our responsibility to manage our shareholders' capital prudently." Fannie Mae also announced earlier this year that the Company will redeem all outstanding shares of its Variable Rate Non-Cumulative Preferred Stock, Series J, with an aggregate stated value of $700 million, on February 28, 2007. Outstanding shares of Series K preferred stock will be redeemed on April 2, 2007, at a redemption price of $50 per share plus a dividend, which will accrue at the Swap Rate (as defined in the Series K Certificate of Designation) plus 1.33 percent for the period from and including March 31, 2007, to but excluding April 2, 2007.
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QUANTUMONLINE.COM SECURITY DESCRIPTION: Fannie Mae (Federal National Mortgage Assoc.), Variable Rate Non-cumulative Preferred Stock, Series K, liquidation preference $50 per share, redeemable at the issuer's option on or after 3/18/2005 at $50 per share plus declared and unpaid dividends, with no stated maturity, and with variable rate noncumulative distributions paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record on the date fixed by the board, not more than 45 days or less than 10 days prior to the payment date. 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. The initial dividend rate is 3.00% per annum through 3/18/2005. At 3/18/2005 and on 3/18 every two years thereafter the variable rate will be reset to a rate equal to the Two-Year Swap Rate plus 1.33% with an maximum rate of 8.00% per annum. 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. The preferred has DRD protection through 9/18/2004. At the IPO the security has been rated AA- by S&P and Aa3 by Moodys. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.
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Go to Parent Company's Record (FNMA)
IPO - 3/12/2003 - 7.00 Million Shares @ $50.00/share.
Link to IPO Prospectus
Market Value $350.0 Million
Company's Online Information Links
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Company's Online SEC EDGAR Filings |
Company's Email Address Links |
Address and Phone Numbers |
Address: 3900 Wisconsin Avenue NW, Washington, DC 20016 |
Main Phone Number |
202-752-7000 |
Fax Number |
202-752-4447 |
Investor Relations
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202-752-7115
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Toll Free Phone Number |
800-732-6643 |
CEO - Daniel H. Mudd |
CFO - Stephen M. Swad |
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