JPMorgan announces the redemption of $9 billion of capital securities

By Tali David

Minneapolis, June 11 - JPMorgan Chase & Co. announced that nine of its trusts will redeem all of their outstanding trust preferred capital securities totaling $9 billion, according to a press release.

The following will be redeemed at par plus accrued and unpaid distributions on July 12:

• $92,939,000 of JPMorgan Chase Capital XV 5.875% series O securities;

• $500 million of JPMorgan Chase Capital XVII 5.85% series Q securities;

• $750 million of JPMorgan Chase Capital XVIII 6.95% series R securities;

• $909,576,000 of JPMorgan Chase Capital XX 6.55% series T securities;

• $913,773,000 of JPMorgan Chase Capital XXII 6.45% series V securities;

• $1.5 billion of JPMorgan Chase Capital XXV 6.8% series Y securities;

• $1,815,000,000 of JPMorgan Chase Capital XXVI series Z fixed-to-floating rate securities;

• $1 billion of JPMorgan Chase Capital XXVII 7% series AA securities; and

• $1.5 billion of JPMorgan Chase Capital XXVIII series BB fixed-to-floating rate securities.

The redemptions follow the Federal Reserve's June 7 announcement of proposed rules to implement the phase-out of Tier 1 capital treatment for trust preferred capital securities, JPMorgan said. The proposed rules trigger the "capital treatment event" redemption provisions of the trust preferreds.

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