Fannie Mae Prices Offering of $2 Billion of Preferred Stock.
Net proceeds of the offering will be used for general corporate purposes, including enhancing the company's capital position, providing additional market liquidity and pursuing new business opportunities.
"The preferred securities attracted a wide base of individual as well as institutional investors," said David Benson, Senior Vice-President and Treasurer of Fannie Mae. "This issuance completes Fannie Mae's capital raising plan announced last week."
Merrill Lynch & Co. acted as joint lead manager and physical book-runner. Citigroup Global Markets Inc., Morgan Stanley, UBS Securities LLC and Wachovia Capital Markets, LLC also acted as joint lead managers and book-runners. Application will be made to list the shares on the New York Stock Exchange under the symbol "FNMprT."
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. In 2008, we mark our 70th year of service to America's housing market. Our job is to help to those who house America.
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. Any investment decision as to any purchase of securities referred to herein must be made solely on the basis of information contained in Fannie Mae's applicable offering documents, and that no reliance may be placed on the completeness or accuracy of the information contained in this press release.
You should not deal in securities unless you understand their nature and the extent of your exposure to risk. You should be satisfied that they are suitable for you in the light of your circumstances and financial position. If you are in any doubt you should consult an appropriately qualified financial advisor.
CONTACT: Jason Lobo, +1-202-752-1692, or Janis Smith, +1-202-752-6673, both of Fannie Mae
Web site: http://www.fanniemae.com/