By Stephanie N. Rotondo
Phoenix, Dec. 11 - Wells Fargo & Co. priced a $750 million offering of 6.625% series R class A fixed-to-floating rate noncumulative perpetual preferred stock (expected ratings: Baa3/BBB+/BBB), according market sources on Wednesday.
The preferreds will be issued as depositary shares representing a 1/1,000th interest.
Wells Fargo Securities LLC is the bookrunner.
When declared, dividends will be payable on the 15th day of March, June, September and December, beginning March 15. The dividend will be fixed through March 15, 2024, at which time it will float at Libor plus 369 basis points.
The preferreds become redeemable on or after March 15, 2024 at par plus accrued dividends. The company also has an option to redeem the preferreds in whole prior to that date in the case of a regulatory capital treatment event.
The San Francisco-based bank will apply to list the new series of preferreds on the New York Stock Exchange under the ticker symbol "WFCPR."
Proceeds will be used for general corporate purposes.
| Issuer: | Wells Fargo & Co.
|
| Securities: | Series R class A fixed-to-floating rate noncumulative preferred stock
|
| Amount: | $750 million, or 30 million shares
|
| Maturity: | Perpetual
|
| Bookrunner: | Wells Fargo Securities LLC
|
| Lead managers: | BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC
|
| Dividend: | Fixed at 6.625% until March 15, 2024, then floating at Libor plus 369 bps
|
| Price: | Par of $25.00
|
| Yield: | 6.625%
|
| Talk: | Around 6.625%
|
| Call options: | On or after March 15, 2024 or prior to that date upon a regulatory capital treatment event at par plus accrued dividends
|
| Pricing date: | Dec. 11
|
| Settlement date: | Dec. 18
|
| Expected ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB+
|
| Fitch: BBB
|
| Expected listing: | NYSE: WFCPR
|
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