JPMorgan Chase begins tender offer for trust preferred securities

By Angela McDaniels

Tacoma, Wash., Aug. 4 - JPMorgan Chase & Co. has begun a tender offer for any and all of seven series of trust preferred securities, according to a company news release.

Covered by the offer are the following:

• $500 million global floating-rate capital securities, series B, issued by Chase Capital II;

• $250 million floating-rate preferred securities issued by First Chicago NBD Capital I;

• $300 million floating-rate capital securities, series C, issued by Chase Capital III;

• $250 million floating-rate capital securities, series F, issued by Chase Capital VI;

• $475 million floating-rate capital securities, series M, issued by JPMorgan Chase Capital XIII;

• $850 million floating-rate capital securities, series U, issued by JPMorgan Chase Capital XXI; and

•$750 million floating-rate capital securities, series W, issued by JPMorgan Chase Capital XXIII.

For each $1,000 liquidation amount, the purchase price is $600 for the series M and series U floating-rate capital securities and $630 for the remaining securities.

Holders will also receive accrued distributions up to but excluding the settlement date.

The offer is scheduled to expire at 11:59 p.m. ET on Aug. 11.

The New York financial services firm said it is making the offer in order to provide liquidity to any holders of the trust preferreds who wish to dispose of any or all of their securities.

The tender offer is conditioned on the satisfaction of some customary conditions, but it is not conditioned on the tender of any minimum principal amount of securities.

J.P. Morgan Securities Inc. (866 834 4666 or 212 834-3424) is the dealer manager, and Global Bondholder Services Corp. (866 540-1500 or, for banks and brokers, 212 430-3774) is the depositary and information agent.

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