Freddie Mac 2009 Annual Report Download - page 269

Freddie Mac stock or securities. Costs incurred in connection with the issuance of preferred stock are charged to additional
paid-in capital.
Table 10.2 — Preferred Stock
Issue Date
Shares
Authorized
Shares
Outstanding
Total Par
Value
Redemption
Price per
Share
Total
Outstanding
Balance
(1)
Redeemable
On or After
(2)
NYSE
Symbol
(3)
(in millions, except redemption price per share)
Preferred stock:
1996 Variable-rate
(4)
......... April 26, 1996 5.00 5.00 $ 5.00 $50.00 $ 250 June 30, 2001 FRE.prB
5.81% .................. October 27, 1997 3.00 3.00 3.00 50.00 150 October 27, 1998 (5)
5%.................... March 23, 1998 8.00 8.00 8.00 50.00 400 March 31, 2003 FRE.prF
1998 Variable-rate
(6)
......... September 23 and 29, 1998 4.40 4.40 4.40 50.00 220 September 30, 2003 FRE.prG
5.10% .................. September 23, 1998 8.00 8.00 8.00 50.00 400 September 30, 2003 FRE.prH
5.30% .................. October 28, 1998 4.00 4.00 4.00 50.00 200 October 30, 2000 (5)
5.10% .................. March 19, 1999 3.00 3.00 3.00 50.00 150 March 31, 2004 (5)
5.79% .................. July 21, 1999 5.00 5.00 5.00 50.00 250 June 30, 2009 FRE.prK
1999 Variable-rate
(7)
......... November 5, 1999 5.75 5.75 5.75 50.00 287 December 31, 2004 FRE.prL
2001 Variable-rate
(8)
......... January 26, 2001 6.50 6.50 6.50 50.00 325 March 31, 2003 FRE.prM
2001 Variable-rate
(9)
......... March 23, 2001 4.60 4.60 4.60 50.00 230 March 31, 2003 FRE.prN
5.81% .................. March 23, 2001 3.45 3.45 3.45 50.00 173 March 31, 2011 FRE.prO
6%.................... May30,2001 3.45 3.45 3.45 50.00 173 June 30, 2006 FRE.prP
2001 Variable-rate
(10)
........ May30,2001 4.02 4.02 4.02 50.00 201 June 30, 2003 FRE.prQ
5.70% .................. October 30, 2001 6.00 6.00 6.00 50.00 300 December 31, 2006 FRE.prR
5.81% .................. January 29, 2002 6.00 6.00 6.00 50.00 300 March 31, 2007 (5)
2006 Variable-rate
(11)
........ July 17, 2006 15.00 15.00 15.00 50.00 750 June 30, 2011 FRE.prS
6.42% .................. July 17, 2006 5.00 5.00 5.00 50.00 250 June 30, 2011 FRE.prT
5.90% .................. October 16, 2006 20.00 20.00 20.00 25.00 500 September 30, 2011 FRE.prU
5.57% .................. January 16, 2007 44.00 44.00 44.00 25.00 1,100 December 31, 2011 FRE.prV
5.66% .................. April 16, 2007 20.00 20.00 20.00 25.00 500 March 31, 2012 FRE.prW
6.02% .................. July 24, 2007 20.00 20.00 20.00 25.00 500 June 30, 2012 FRE.prX
6.55% .................. September 28, 2007 20.00 20.00 20.00 25.00 500 September 30, 2017 FRE.prY
2007 Fixed-to-floating Rate
(12)
. . . December 4, 2007 240.00 240.00 240.00 25.00 6,000 December 31, 2012 FRE.prZ
Total, preferred stock ....... 464.17 464.17 $464.17 $14,109
(1) Amounts stated at redemption value.
(2) In accordance with the Purchase Agreement, until the senior preferred stock is repaid or redeemed in full, we may not, without the prior written
consent of Treasury, redeem, purchase, retire or otherwise acquire any Freddie Mac equity securities (other than the senior preferred stock or warrant).
See “NOTE 11: REGULATORY CAPITAL” for more information.
(3) Preferred stock is listed on the NYSE unless otherwise noted.
(4) Dividend rate resets quarterly and is equal to the sum of three-month LIBOR plus 1% divided by 1.377, and is capped at 9.00%.
(5) Not listed on any exchange.
(6) Dividend rate resets quarterly and is equal to the sum of three-month LIBOR plus 1% divided by 1.377, and is capped at 7.50%.
(7) Dividend rate resets on January 1 every five years after January 1, 2005 based on a five-year Constant Maturity Treasury rate, and is capped at
11.00%. Optional redemption on December 31, 2004 and on December 31 every five years thereafter.
(8) Dividend rate resets on April 1 every two years after April 1, 2003 based on the two-year Constant Maturity Treasury rate plus 0.10%, and is capped
at 11.00%. Optional redemption on March 31, 2003 and on March 31 every two years thereafter.
(9) Dividend rate resets on April 1 every year based on 12-month LIBOR minus 0.20%, and is capped at 11.00%. Optional redemption on March 31, 2003
and on March 31 every year thereafter.
(10) Dividend rate resets on July 1 every two years after July 1, 2003 based on the two-year Constant Maturity Treasury rate plus 0.20%, and is capped at
11.00%. Optional redemption on June 30, 2003 and on June 30 every two years thereafter.
(11) Dividend rate resets quarterly and is equal to the sum of three-month LIBOR plus 0.50% but not less than 4.00%.
(12) Dividend rate is set at an annual fixed rate of 8.375% from December 4, 2007 through December 31, 2012. For the period beginning on or after
January 1, 2013, dividend rate resets quarterly and is equal to the higher of (a) the sum of three-month LIBOR plus 4.16% per annum or (b) 7.875%
per annum. Optional redemption on December 31, 2012, and on December 31 every five years thereafter.
Stock Repurchase and Issuance Programs
We did not repurchase or issue any of our common shares or non-cumulative preferred stock during 2009 and 2008,
except for issuances of Treasury stock as reported on our Consolidated Statements of Equity (Deficit). During 2009,
restrictions lapsed on 1,758,668 restricted stock units, all of which were granted prior to conservatorship. For a discussion
regarding our stock-based compensation plans, see “NOTE 12: STOCK-BASED COMPENSATION.” Consistent with the
terms of the Purchase Agreement, we may not, without prior written consent of Treasury, redeem, purchase, retire or
otherwise acquire any Freddie Mac equity securities or sell or issue any Freddie Mac equity securities.
Dividends Declared During 2009
No common dividends were declared in 2009. During 2009, we paid dividends of $4.1 billion in cash on the senior
preferred stock at the direction of our Conservator. We did not declare or pay dividends on any other series of Freddie Mac
preferred stock outstanding during 2009.
NOTE 11: REGULATORY CAPITAL
On October 9, 2008, FHFA announced that it was suspending capital classification of us during conservatorship in light
of the Purchase Agreement. Concurrent with this announcement, FHFA classified us as undercapitalized as of June 30, 2008
266 Freddie Mac