American Express announced it has commenced a public offering of $500 million of its common stock for sale to the public. American Express will also grant the underwriters a 30-day option to purchase up to an additional $75 million of its common stock.
The company will use the capital raised through the equity offering for general corporate purposes which may include, subject to regulatory approval, the partial funding of a repurchase of $3.4 billion of preferred shares issued to the U.S. Treasury as part of the Capital Purchase Program (CPP).
The company announced last month that it was seeking permission to repay the government investment, after receiving a final report from the Federal Reserve that concluded there would be âno capital needâ under the more adverse assumptions used by the Supervisory Capital Assessment Program. In accordance with guidance from the Federal Reserve, the companyâs public equity offering is a precondition to repurchasing the preferred shares issued to the Treasury.
âWeâve always viewed the Capital Purchase Program as a temporary program and are pleased to be in position to repurchase the preferred shares issued to the Treasury,â said Kenneth I. Chenault, chairman and chief executive officer, American Express.
American Express has filed a shelf registration statement with the Securities and Exchange Commission (SEC) and will file a prospectus supplement related to this offering. Prospective investors should read the registration statement (including the base prospectus), the prospectus supplement and other documents the company has filed with the SEC for more complete information about the company and the offering. This announcement does not constitute an offer to sell or the solicitation of any offer to buy the common stock, nor shall there be any offer or sale of the common stock in any jurisdiction in which such offer, solicitation or sale would be unlawful. The offering will be made only by means of a prospectus. Investors may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Additionally, the prospectus can be requested by contacting Goldman, Sachs & Co., Attention: Prospectus Department, 85 Broad Street, New York, NY 10004, telephone: 212-902-1171 or 866-471-2526, fax: 212-902-9316, email: [email protected]
American Express Company is a leading global payments and travel company founded in 1850.
JPMorgan Chase to Raise $5 Billion in Common Equity to Satisfy a Supervisory Condition for Tarp Repayment Requiring Demonstrated Access to Equity Capital Markets
JPMorgan Chase & Co. announced it intends to raise $5 billion in common equity to satisfy a supervisory condition that the largest bank holding companies redeeming TARP (Troubled Asset Relief Program) preferred capital demonstrate access to the equity capital markets. While approval has not been granted, the company believes that upon completion of this capital raise it will have satisfied the criteria for fully redeeming the TARP preferred capital and expects to do so before the end of June.
JPMorgan Chase expects to have Tier One Capital of approximately $118 billion or 9.3% and Tier One Common of approximately $93 billion or 7.3% at the end of the second quarter, after the capital raise and the TARP preferred capital redemption. The company also expects to maintain its extremely strong capital ratios, even in the event of a more highly stressed environment over the next two years.
JPMorgan Chase believes that redeeming the TARP preferred capital is in the best interests of the country and the company, and that these funds can be used by the Government for other critical purposes. JPMorgan Chase also reaffirms its commitment to continued robust lending to consumers, small businesses, non-profits, municipalities, corporations and others.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.1 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan, Chase, and WaMu brands.
No offer to sell or solicitation of an offer to buy such common shares shall be made in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.
JPMorgan Chase has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the applicable prospectus supplement and other documents JPMorgan Chase has filed with the SEC for more complete information about JPMorgan Chase and this offering. You may get these documents for free by visiting EDGAR on the SEC web site at www.sec.gov. Alternatively, JPMorgan Chase & Co. or J.P. Morgan Securities Inc. will arrange to send to you the prospectus if you request it by calling toll-free 1-866-430-0686.