JPMorgan Chase & Co. (JPM, Financial) has announced the issuance of 300,000 shares of its 6.500% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series OO. This issuance, dated February 4, 2025, is part of the company's strategic efforts to strengthen its capital structure. Each share of the Series OO Preferred Stock carries a par value of $1.00 and a liquidation preference of $10,000 per share.
The newly issued shares were deposited against the delivery of depositary receipts, which evidence 3,000,000 depositary shares. Each depositary share represents a one-tenth interest in a share of the Series OO Preferred Stock. Computershare Inc. acts as the depositary for these shares.
Under the terms of the Series OO Preferred Stock, JPMorgan Chase & Co. is subject to certain restrictions regarding dividend payments and other financial distributions. Specifically, the company cannot pay dividends on its common stock or any preferred stock ranking on a parity with or junior to the Series OO Preferred Stock if it fails to declare dividends on the Series OO Preferred Stock for the most recent dividend period. Additionally, liquidation payments to holders of the Series OO Preferred Stock must include $10,000 per share plus any declared and unpaid dividends.
The rights, preferences, and restrictions of the Series OO Preferred Stock are detailed in the Certificate of Designations filed with the Secretary of State of Delaware. This document became effective upon filing on February 3, 2025.
The issuance and sale of these shares were completed under an Underwriting Agreement dated January 28, 2025, involving J.P. Morgan Securities LLC and other underwriters. The sale was conducted pursuant to JPMorgan Chase & Co.'s Registration Statement on Form S-3.
This strategic move by JPMorgan Chase & Co. is expected to provide the company with enhanced financial flexibility and support its ongoing growth initiatives.
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