Recent Preferred Stock Offerings Offer Attractive Terms

May 12, 2008 - PRLog -- The difficult environment for raising capital has lead to many companies issuing preferred stocks. These new preferred stock issuances have been large when compared to previous offerings. The issuing companies have had to offer attractive terms to sell these large offerings, this has been especially true in the financial sector where many new offerings have high dividend rate and some include options to convert to common stocks.

Some recent issues

1)   Federal Home Loan Mortgage Corp Series Z fixed to floating rate dividend with a liquidation preference of $25.00 per share (FRE-PZ). The $6 billion issued pays a quarterly dividend when and if declared by the Board of Directors at fixed rate of 8.375% until 2013. Thereafter the rate is variable based on Libor + 416bps with a 7.875% floor. Summary of the terms of this preferred stock can be view at www.preferredstockcentral.com/FREPZ.php

2)   Bank of America Corporation 7.25% Non-Cumulative Perpetual Convertible Preferred Stock Series L with a liquidation preference of $1,000.00 per share (BAC-PL). The $6 billion issue pays a quarterly dividend when and if declared by the Board of Directors at fixed rate of 7.25%. The holder also has the option to convert the preferred stock into 20 shares of common stock equivalent to exercise price of $50.00. Summary of the terms of this preferred stock can be view at www.preferredstockcentral.com/BACPL.php

3)   Merrill Lynch & Co. Inc 8.625% Non-Cumulative Preferred Stock Series 8 with a liquidation preference of $25.00 (MER-PQ).  The $2.7 billion issue pays a quarterly dividend when and if declared by the Board of Directors at fixed rate of 8.625%. Summary of the terms of this preferred stock can be view at www.preferredstockcentral.com/MERPQ.php

4)   Wachovia Corporation 7.50% Non-Cumulative Perpetual Convertible Class A Preferred Stock Series L with liquidation preference of $1,000.00 (WB-PT). The $3.5 billion issue pays a quarterly dividend when and if declared by the Board of Directors at fixed rate of 7.50%. The holder also has the option to convert the preferred stock into 32.0513 shares of common stock equivalent to exercise price of $31.20.  Summary of the terms of this preferred stock can be view at www.preferredstockcentral.com/WBPT.php

5)   Lehman Brothers Holdings Inc 7.25% Non-Cumulative Perpetual Convertible Preferred Stock Series P with liquidation preference of $1,000.00 (LEH-PP). The $4 billion issue pays a quarterly dividend when and if declared by the Board of Directors at fixed rate of 7.25%. The holder also has the option to convert the preferred stock into 20.0509 shares of common stock equivalent to exercise price of $49.87.  Summary of the terms of this preferred stock can be view at www.preferredstockcentral.com/LEHPP.php

6)   Federal National Mortgage Association 8.75% Non-Cumulative Mandatory Convertible Preferred Stock Series 2008-1 with liquidation preference of $50.00 (FNA proposed symbol). The $2.25 billion issue pays a quarterly dividend when and if declared by the Board of Directors at fixed rate of 8.75%. The preferred stock will be converted into common stock on 5/13/2011 in the range of 1.5408 to 1.8182 shares. The conversion price is based on the average of the closing prices of FNM common stock over the 20 consecutive trading day period ending on the third trading day immediately preceding the mandatory conversion date. Summary of the terms of this preferred stock can be view at www.preferredstockcentral.com/FNA.php

For more information on preferred stocks as well as detail knowledge of a particular publicly traded issue visit http://www.preferredstockcentral.com

# # #

Uheld Online Publishing, LLC is an Internet media company that operates free financial information sites. These sites include, Will They Merge? and Preferred Stock Central. For more information on Uheld Online Publishing, LLC or the websites that we operate please visit us at http://uheld.com.