Wells Fargo to redeem some or all of four series of perpetual class A preferreds on March 15

By Rebecca Melvin

New York, Feb. 10 – Wells Fargo & Co. will redeem all of its non-cumulative perpetual class A preferred stock, series P, W and I, and some of its non-cumulative perpetual class A preferred stock, series N, according to three company news releases.

The redemption date is March 15.

The redemption of all 25,000 series P preferred shares will trigger the redemption of 25 million shares of related depositary shares. The redemption price will be equal to $25.00 per redeemed series P depositary share.

The redemption of all 40,000 shares of series W preferred shares will trigger the redemption of the 40 million shares of related depositary shares.

There will be no series P or series W shares or depositary shares remaining outstanding after the redemption.

Wells Fargo will also redeem 16,000 shares of non-cumulative perpetual class A preferred stock, series N. The redemption will trigger the redemption of 16 million shares of the related depositary shares. The redemption price will be equal to $25.00 per redeemed depositary share. After giving effect to the partial redemption, 14,000 shares of the series N preferred stock and 14 million shares of the series N depositary shares will remain outstanding.

Because the redemption date is also the dividend payment date for the shares, the redemption prices do not include declared and unpaid dividends, Wells Fargo said.

Regular quarterly dividends will be paid separately in the customary manner on March 16 to holders of record at the close of business on Feb. 26.

The redemption agent is Equiniti Trust Co.

Wells Fargo also announced that Wachovia Capital Trust III will redeem 2.5 million of its 5.8% fixed-to-floating rate Normal Wachovia Income Trust Securities, which are guaranteed by Wells Fargo. The Normal WITS are mandatorily redeemable as a result of the redemption by Wells Fargo of the series I preferreds.

The redemption price will be equal to $1,000 per Normal WITS. There will be no Normal WITS or series I preferred shares remaining outstanding after the redemptions.

Because the March 15 redemption date is also a distribution date for the Normal WITS, the redemption price does not include the distribution payable on the date. The distribution will be paid separately on March 15 to holders of record on Feb. 28.

The payment will be sent to holders by U.S. Bank NA as property trustee of the trust.

Wells Fargo is a San Francisco-based financial services company.

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