E-mail us: service@prospectnews.com Or call: 212 374 2800
Bank Loans - CLOs - Convertibles - Distressed Debt - Emerging Markets
Green Finance - High Yield - Investment Grade - Liability Management
Preferreds - Private Placements - Structured Products
 
Published on 12/11/2013 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.

New Issue: Wells Fargo sells $750 million 6.625% fixed-to-floating rate noncumulative preferreds

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.