WASHINGTON, Oct. 1 /PRNewswire-FirstCall/ -- Fannie Mae today announced that it has agreed to sell to "qualified institutional buyers" (as defined in Rule 144A under the U.S. Securities Act of 1933, as amended) an aggregate of $375 million of non-cumulative, perpetual, fixed-rate preferred stock (CUSIP 313586 778), designated as Series Q.
Fannie Mae priced 15 million shares of Series Q preferred stock with a stated value of $25 per share at a dividend rate of 6.750 percent per annum. Fannie Mae will have the option to redeem all or part of the Series Q preferred stock, on or after September 30, 2010.
The Series Q preferred stock will have the terms set forth in a Certificate of Designation, which will be available on our Web site. Goldman, Sachs & Co. and Merrill Lynch & Co. acted as the placement agents for this transaction.
The transaction is expected to close on October 4, 2007.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of Fannie Mae. Nothing in this press release constitutes advice on the merits of buying or selling a particular investment.
Fannie Mae is a shareholder-owned company with a public mission. We exist to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to ensure that mortgage bankers and other lenders have enough funds to lend to home buyers at low rates. Our job is to help those who house America.
