Fannie Mae 2006 Annual Report Download - page 306

17. Preferred Stock
The following table displays preferred stock outstanding as of December 31, 2006 and 2005.
Title
Issue
Date Shares Amount Shares Amount
Stated
Value
per Share
Annual
Dividend Rate
as of
December 31,
2006
Redeemable on
or After
2006 2005
Issued and Outstanding as of December 31,
Series D .......September 30, 1998 3,000,000 $ 150,000,000 3,000,000 $ 150,000,000 $ 50 5.250% September 30, 1999
Series E ....... April 15, 1999 3,000,000 150,000,000 3,000,000 150,000,000 50 5.100 April 15, 2004
Series F........ March 20, 2000 13,800,000 690,000,000 13,800,000 690,000,000 50 4.560
(1)
March 31, 2002
(3)
Series G ....... August 8, 2000 5,750,000 287,500,000 5,750,000 287,500,000 50 4.590
(2)
September 30, 2002
(3)
Series H ....... April 6, 2001 8,000,000 400,000,000 8,000,000 400,000,000 50 5.810 April 6, 2006
Series I ........ October 28, 2002 6,000,000 300,000,000 6,000,000 300,000,000 50 5.375 October 28, 2007
Series J ........ November 26, 2002 14,000,000 700,000,000 14,000,000 700,000,000 50 6.453
(4)
November 26, 2004
Series K ....... March 18, 2003 8,000,000 400,000,000 8,000,000 400,000,000 50 5.396
(5)
March 18, 2005
Series L ....... April 29, 2003 6,900,000 345,000,000 6,900,000 345,000,000 50 5.125 April 29, 2008
Series M ....... June 10, 2003 9,200,000 460,000,000 9,200,000 460,000,000 50 4.750 June 10, 2008
Series N .......September 25, 2003 4,500,000 225,000,000 4,500,000 225,000,000 50 5.500 September 25, 2008
Series O ....... December 30, 2004 50,000,000 2,500,000,000 50,000,000 2,500,000,000 50 7.000
(6)
December 31, 2007
Convertible
Series
2004-1 ....... December 30, 2004 25,000 2,500,000,000 25,000 2,500,000,000 100,000 5.375 January 5, 2008
Total ......... 132,175,000 $9,107,500,000 132,175,000 $9,107,500,000
(1)
Rate effective March 31, 2006. Variable dividend rate resets every two years at the two-year Constant Maturity U.S. Treasury Rate
(“CMT”) minus 0.16% with a cap of 11% per year. As of December 31, 2005, the annual dividend rate was 1.37%.
(2)
Rate effective September 30, 2006. Variable dividend rate resets every two years at the two-year CMT rate minus 0.18% with a cap of
11% per year. As of December 31, 2005, the annual dividend rate was 2.35%.
(3)
Represents initial call date. Redeemable every two years thereafter.
(4)
Rate effective November 26, 2006. Variable dividend rate resets every two years at the two-year U.S. Dollar Swap Rate plus 1.38%
with a cap of 8% per year. As of December 31, 2005, the annual dividend rate was 4.716%.
(5)
Rate effective March 18, 2005. Variable dividend rate resets every two years thereafter at the two-year U.S. Dollar Swap Rate plus
1.33% with a cap of 8% per year. As of March 18, 2007, the annual dividend rate was 6.304%.
(6)
Rate effective December 31, 2006 and 2005. Variable dividend rate resets quarterly thereafter at the greater of 7.00% or the 10-year
CMT rate plus 2.375%. As of June 30, 2007, the annual dividend rate was 7.515%.
We are authorized to issue up to 200 million shares of preferred stock, in one or more series. Each series of
our preferred stock has no par value, is non-participating, is nonvoting and has a liquidation preference equal
to the stated value per share. Each series has an equal liquidation preference to each other, with the exception
of the Convertible Series 2004-1 Preferred Stock, which has a liquidation preference of $100,000 per share.
None of our preferred stock is convertible into or exchangeable for any of our other stock or obligations, with
the exception of the Convertible Series 2004-1 issued in December 2004.
Shares of the Convertible Series 2004-1 Preferred Stock are convertible at any time, at the option of the
holders, into shares of Fannie Mae common stock at a conversion price of $94.31 per share of common stock
(equivalent to a conversion rate of 1,060.3329 shares of common stock for each share of Series 2004-1
Preferred Stock). The conversion price is adjustable, as necessary, to maintain the stated conversion rate into
common stock. Events which may trigger an adjustment to the conversion price include certain changes in our
common stock dividend rate, subdivisions of our outstanding common stock into a greater number of shares,
combinations of our outstanding common stock into a smaller number of shares and issuances of any shares
by reclassification of our common stock. No such events have occurred such that a change in conversion price
would be required.
F-75
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)