Fannie Mae Sells Largest Ever Debt Issuance, Will Pay Q3 Dividends
Friday, September 12, 2008
Fannie Mae sold $7 billion in two-year notes yesterday, its largest ever syndicated Benchmark Notes debt issuance, the company said. The sale of the securities suggests strong interest from investors and a quelling of fears about Fannie Mae's stability now that the government has taken control of the company.
The mortgage financier also announced yesterday that the company has received the consent of its conservator, the Federal Housing Finance Agency (FHFA), and the U.S. Department of the Treasury to pay dividends on its outstanding preferred stock for the third quarter, as previously scheduled on September 30. The dividends were declared prior to Fannie Mae being placed in conservatorship, and are therefore an outstanding obligation to be honored, the company said. The Treasury's consent is limited solely to the payment of this previously declared but unpaid dividend. As DSNews.com reported earlier this week, future common and preferred stock dividends will be eliminated.
The mortgage financier also announced yesterday that the company has received the consent of its conservator, the Federal Housing Finance Agency (FHFA), and the U.S. Department of the Treasury to pay dividends on its outstanding preferred stock for the third quarter, as previously scheduled on September 30. The dividends were declared prior to Fannie Mae being placed in conservatorship, and are therefore an outstanding obligation to be honored, the company said. The Treasury's consent is limited solely to the payment of this previously declared but unpaid dividend. As DSNews.com reported earlier this week, future common and preferred stock dividends will be eliminated.
