May 13, 2008Fannie Mae Prices Offering of $2 Billion of Preferred Stock
WASHINGTON, DC -- Fannie Mae (FNM/NYSE) today priced $2 billion, or 80 million shares, of non-cumulative, non-convertible, perpetual fixed-rate preferred stock, designated as Series T. The Series T preferred stock (CUSIP 313586737) has a stated value of $25 per share and a dividend rate of 8.25 percent per annum. Fannie Mae will have the option to redeem all or part of the preferred stock on or after May 20, 2013. It is expected to be issued on May 19, 2008.
Net proceeds of the offering will be used for general corporate purposes, including enhancing the company's capital position, providing additional market liquidity and pursuing new business opportunities.
"The preferred securities attracted a wide base of individual as well as institutional investors," said David Benson, Senior Vice-President and Treasurer of Fannie Mae. "This issuance completes Fannie Mae's capital raising plan announced last week."
Merrill Lynch & Co. acted as joint lead manager and physical book-runner. Citigroup Global Markets Inc., Morgan Stanley, UBS Securities LLC and Wachovia Capital Markets, LLC also acted as joint lead managers and book-runners. Application will be made to list the shares on the New York Stock Exchange under the symbol "FNMprT."