Glendale Federal to Exchange Preferred Stock

Glendale Federal Bank said it has agreed to exchange 980,000 shares of its Series E preferred stock for 2.626 million shares of the savings and loan’s common stock.

Glendale Federal Chief Executive Stephen J. Trafton said the stock exchange was done to allow the savings and loan “to reduce the amount of dividends paid on its preferred stock in the future.”

He also said the company may consider exchanging other Series E preferred stock shares with other investors.