JP Morgan Chase 2003 Annual Report Download - page 113

J.P. Morgan Chase & Co. / 2003 Annual Report 111
Amount of Principal amount Stated maturity of Earliest Interest rate of Interest
($ in millions) capital securities, of debenture, Issue capital securities redemption capital securities payment/distribution
Name of trust issued by trust(a) held by trust(b) date and debentures date and debentures dates
Chase Capital I $ 600 $ 619 1996 2026 2006 7.67% Semiannually
Chase Capital II 495 511 1997 2027 2017 LIBOR + 0.50% Quarterly
Chase Capital III 296 305 1997 2027 2012 LIBOR + 0.55% Quarterly
Chase Capital V 200 206 1998 2028 Anytime 7.03% Quarterly
Chase Capital VI 248 257 1998 2028 Anytime LIBOR + 0.625% Quarterly
Chase Capital VII 350 361 1999 2029 2004 7.00% Quarterly
Chase Capital VIII 250 258 2000 2030 2005 8.25% Quarterly
JPM Capital Trust I 750 773 1996 2027 2007 7.54% Semiannually
JPM Capital Trust II 400 412 1997 2027 2007 7.95% Semiannually
J.P.Morgan Chase Capital IX 500 515 2001 2031 2006 7.50% Quarterly
J.P.Morgan Chase Capital X 1,000 1,031 2002 2032 2007 7.00% Quarterly
J.P.Morgan Chase Capital XI 1,075 1,108 2003 2033 2008 5.88% Quarterly
J.P.Morgan Chase Capital XII 400 412 2003 2033 2008 6.25% Quarterly
Total $ 6,564 $ 6,768
(a) Represents the amount of capital securities issued to the public by each trust, net of unamortized discount.
(b) Represents the principal amount of JPMorgan Chase debentures held as assets by each trust, net of unamortized discount.
Preferred stock of subsidiary
Chase Preferred Capital Corporation (“ Chase Preferred
Capital” ), a w holly owned subsidiary of JPM organ Chase Bank,
a bank subsidiary of JPM organ Chase, is a real estate investment
trust (“ REIT” ) established for the purpose of acquiring, holding
and managing real estate mortgage assets. On February 28,
2002, Chase Preferred Capital redeemed all 22 million outstand-
ing shares of its 8.10% Cumulative Preferred Stock, Series A, at
a redemption price of $25 plus accrued and unpaid dividends.
Note 19
The follow ing is a summary of JPM organ Chase’s preferred stock outstanding:
Stated value and Shares Outstanding at December 31, Earliest Rate in effect at
redemption price per share(a) (in millions) 2003 (in millions) 2002 redemption date December 31, 2003
Adjustable rate, Series A cumulative $ 100.00 2.42 $242 $242 See Note(b) 5.00%(c)
Adjustable rate, Series L cumulative 100.00 2.00 200 200 See Note(b) 4.50(c)
Adjustable rate, Series N cumulative 25.00 9.10 228 228 See Note(b) 4.50(c)
Fixed/adjustable rate, noncumulative 50.00 4.00 200 200 See Note(b) 5.46(c)
6.63% Series H cumulative(d) 500.00 0.28 139 139 3/31/2006 6.63
Total preferred stock $1,009 $1,009
(a) Redemption price includes amount shown in the table plus any accrued but unpaid dividends.
(b) The shares are redeemable at any time w ith not less than 30 nor more than 60 days’ notice.
(c) Floating rates are based on certain U.S. Treasury rates. The minimum and maximum rates for Series A are 5.00% and 11.50% and for Series L and Series N are 4.50% and 10.50% , respectively.
The fixed/adjustable rate preferred stock remained fixed at 4.96% through June 30, 2003; thereafter, the minimum and maximum rates are 5.46% and 11.46% , respectively.
(d) Represented by depositary shares.
Preferred stock
JPM organ Chase is authorized to issue 200 million shares of
preferred stock, in one or more series, w ith a par value of $1
per share. Outstanding preferred stock at both December 31,
2003 and 2002 w as 17.8 million shares. The Firm did not issue,
redeem or repurchase any preferred stock during 2003 or 2002.
Dividends on shares of each outstanding series of preferred
stock are payable quarterly. All the preferred stock outstanding
have preference over JPM organ Chase’s common stock for the
payment of dividends and the distribution of assets in the event
of a liquidation or dissolution of JPM organ Chase.
Note 20
December 31, 2003, under the caption “ Junior subordinated
deferrable interest debentures held by trusts that issued guaran-
teed capital debt securities.” JPM organ Chase records interest
expense on the corresponding junior subordinated debentures in
its Consolidated statements of income. The Firm also recorded
the common capital securities issued by the issuer trusts in Other
assets in its Consolidated balance sheet at December 31, 2003.
The debentures issued by the issuer trusts to JPM organ Chase, less
the capital securities of the issuer trusts, continue to qualify as Tier 1
capital under interim guidance issued by the Board of Governors
of the Federal Reserve System (the “ Federal Reserve Board” ).
The follow ing is a summary of the outstanding capital securities,
net of discount, issued by each trust and the junior subordinated
deferrable interest debenture issued by JPM organ Chase to each
trust as of December 31, 2003: