Freddie mac to offer $6B of preferred stock, cut dividend in half to 25c |
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Tue, 27 Nov 2007 22:36
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SAN FRANCISCO (Thomson Financial) - Freddie Mac said late Tuesday it will offer $6 billion of non-cumulative perpetual preferred stock, and said it plans to reduce its fourth-quarter common stock dividend to 25 cents from 50 cents.The stock issuance will involve a larger offering of non-convertible non-cumulative perpetual preferred stock, and a substantially smaller offering of convertible non-cumulative perpetual preferred stock, Freddie Mac said.Last week, the mortgage company said that, in order to meet the 30% mandatory target capital surplus mandated by the Office of Federal Housing Enterprise Oversight, as well as to 'have the flexibility to further its franchise value,' it planned to take near-term capital raising actions.Freddie Mac said the capital raised through the stock offering will be used to bolster its capital base and help it meet the 30% surplus target going forward.Gabriel MadwaygmCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Freddie Mac preferred stock, risk to government outlook cut to negative - S&P 