Fannie Prices $2B of Preferred Stock

Fannie Mae has announced the pricing of 80 million shares of series T noncumulative, nonconvertible, perpetual fixed-rate preferred stock. The series T stock (CUSIP 313586737) has a stated value of $25 per share, for a total of $2 billion, and an annual dividend rate of 8.25%. Fannie Mae will have the option to redeem all or part of the preferred stock on or after May 20, 2013. 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 company said. David Benson, Fannie's senior vice-president and treasurer, said the issuance completes Fannie Mae's recently announced capital-raising plan. Merrill Lynch & Co. acted as joint lead manager and physical book-runner.