By Cristal Cody
Tupelo, Miss., March 23 – Wells Fargo & Co. priced $6 billion of registered medium-term senior redeemable fixed-to-floating rate notes (A2/A-/A+) in two tranches on Monday, according to a market source.
A $2.5 billion tranche of 4.478% fixed-to-floating rate notes due April 4, 2031 priced at a spread of 375 basis points over Treasuries. The notes were initially talked to price in the Treasuries plus 375 bps spread area.
The rate on the notes will convert in April 2030 to a floating rate of Libor plus 377 bps.
Wells Fargo sold $3.5 billion of 5.013% fixed-to-floating rate notes due April 4, 2051 at a spread of Treasuries plus 370 bps. Initial price talk was in the Treasuries plus 375 bps area.
The fixed fate on the notes will be reset in April 2050 to a floating rate of Libor plus 424 bps.
Both tranches were talked to price at the Treasuries plus 375 bps area.
Wells Fargo Securities LLC was the bookrunner.
The financial services company is based in San Francisco.
| Issuer: | Wells Fargo & Co.
|
| Amount: | $6 billion
|
| Description: | Series U medium-term senior redeemable fixed-to-floating rate notes
|
| Bookrunner: | Wells Fargo Securities LLC
|
| Trade date: | March 23
|
| Settlement date: | March 30
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| 11-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | April 4, 2031
|
| Coupon: | 4.478%; resets in April 2030 to floating rate of Libor plus 377 bps
|
| Spread: | Treasuries plus 375 bps
|
| Price guidance: | Treasuries plus 375 bps area
|
|
|
| 31-year notes
|
| Amount: | $3.5 billion
|
| Maturity: | April 4, 2051
|
| Coupon: | 5.013%; resets in April 2050 to floating rate of Libor plus 424 bps
|
| Spread: | Treasuries plus 370 bps
|
| Price guidance: | Treasuries plus 375 bps area
|
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