30.12.2004: Meldung: Fannie Mae Prices Two Preferred Stock Placements

Wednesday December 29, 6:05 pm ET

WASHINGTON, Dec. 29 / Fannie Mae (NYSE: FNM - News) 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 $5 billion in two placements of non-cumulative preferred stock.

The $2.5 billion series of 5.375 percent Non-Cumulative Convertible Series 2004-1 Preferred Stock has a stated value and liquidation preference of $100,000 per share and is convertible by holders into shares of Fannie Mae common stock at a conversion price of $ 94.31. Fannie Mae also priced $2.5 billion of Non-Cumulative Preferred Stock Series O with a stated value of $50 per share and is a non-convertible floating rate preferred stock with an original coupon of 7.00 percent. The coupon re-prices quarterly at the higher of 7.00 percent and the sum of the 10-year CMT rate plus 237.5 basis points. Lehman Brothers Inc. served as sole placement agent for these transactions.

"This placement of preferred stock is a key component of Fannie Mae"s capital restoration plan," said Donald Marron, the member of the Board of Directors who is leading the company"s work with our safety and soundness regulator OFHEO on the required capital plan. "Working with OFHEO, we will be finalizing the details of the capital plan shortly."

"Fannie Mae"s announcement today of its placement of preferred stock represents the largest capital placement ever undertaken by Fannie Mae," said Stephen Ashley, non-executive chairman of the Fannie Mae Board of Directors. "I want to compliment interim CEO Daniel Mudd and company management for its efforts to get this done before the end of the year."

"The company has pledged to work with OFHEO to take steps to properly address our capital situation," Ann Korologos, presiding director of the Board of Directors, added. "We thank OFHEO for its willingness to work with the Board and management to take this step expeditiously."

These transactions are expected to close tomorrow, Thursday, December 30, 2004. Fannie Mae will file a Form 8-K with the Securities and Exchange Commission within four business days.

Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation"s largest source of financing for home mortgages. Fannie Mae has pledged through its "American Dream Commitment" to expand access to homeownership for millions of first-time home buyers; help raise the minority homeownership rate to at least 55 percent; make homeownership and rental housing a success for millions of families at risk of losing their homes; and expand the supply of affordable housing where it is needed most. Since 1968, Fannie Mae has provided $6.3 trillion of mortgage financing for 63 million families. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com.

Fannie Mae voluntarily registered its common stock with the Securities and Exchange Commission (SEC) under Section 12(g) of the Securities Exchange Act of 1934, on March 31, 2003.

Style Usage: Fannie Mae"s Board of Directors has authorized the company to operate as "Fannie Mae," and the company"s stock is now listed on the NYSE as "FNM." In order to facilitate clarity and avoid confusion, news organizations are asked to refer to the company exclusively as "Fannie Mae."

Source: Fannie Mae
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