March 31, 2008Fannie Mae Adjusts Dividend Rate for its Series F and Series P Preferred Stock
WASHINGTON, DC -- Fannie Mae (FNM/NYSE) today announced scheduled dividend rate adjustments for two Series of Variable Rate Non-Cumulative Preferred Stock: Series F and P. The new rates will be 1.36 percent per annum for Series F (CUSIP 313586703) and 4.50 percent per annum for Series P (CUSIP 313586786).
The new dividend rate of 1.36 percent per annum for Series F Preferred Stock equals the two-year Constant Maturity Treasury Rate (CMT Rate) minus 0.16 percent, subject to a cap of 11 percent per year. The 2-Year CMT Rate is the one-week average yield on 2-year United States Treasury (Treasury) securities at "constant maturity" as estimated from the Treasury's weekly yield curve and published in the latest H.15(519). In accordance with the terms of the Series F Preferred Stock, the dividend rate was initially set as of March 20, 2000, and the rate resets as of March 31 every two years thereafter. The new dividend rate for Series F Preferred Stock will be in effect from and including March 31, 2008, to but excluding, March 31, 2010. Thirteen million eight hundred thousand (13,800,000) shares of Series F Preferred Stock at a stated value of $50.00 per share or an aggregate stated value of $690 million, were issued and are currently outstanding.
The new dividend rate of 4.50 percent per annum for Series P Preferred Stock will be in effect from and including March 31, 2008, to but excluding June 30, 2008. In accordance with the terms of the Series P Preferred Stock Certificate of Designation, the dividend will continue to accrue at a per annum rate equal to the greater of (i) 4.50 percent and (ii) the sum of the 3-Month LIBOR plus 0.75 percent. Forty million (40,000,000) shares of Series P Preferred Stock at a stated value of $25.00 per share or an aggregate stated value of $1 billion, were issued and are currently outstanding.
Holders of record for Series F and Series P Preferred Stock will be entitled to quarterly dividends when and if declared by the Board of Directors of Fannie Mae. For more information about Series F or Series P Preferred Stock, interested parties should refer to the respective Certificates of Designation, which are available on Fannie Mae's Web site at www.fanniemae.com.