By Cristal Cody
Tupelo, Miss., March 26 – Wells Fargo & Co. priced a $2 billion add-on to its 5.013% fixed-to-floating rate notes due April 4, 2051 (A2/A-/A+) on Thursday at a spread of Treasuries plus 275 basis points, according to a market source.
Initial price talk was in the Treasuries plus 280 bps area.
Wells Fargo first sold $3.5 billion of the notes on March 23 at a spread of Treasuries plus 370 bps. The total outstanding is now $5.5 billion.
The rate will be reset in April 2050 to a floating rate of Libor plus 424 bps.
Wells Fargo Securities LLC was the bookrunner.
The financial services company is based in San Francisco.
| Issuer: | Wells Fargo & Co.
|
| Amount: | $2 billion reopening
|
| Description: | Series U medium-term senior redeemable fixed-to-floating rate notes
|
| Maturity: | April 4, 2051
|
| Bookrunner: | Wells Fargo Securities LLC
|
| Coupon: | 5.013%; resets in April 2050 to floating rate of Libor plus 424 bps
|
| Spread: | Treasuries plus 275 bps
|
| Trade date: | March 26
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 280 bps area
|
| Total outstanding: | $5.5 billion, including $3.5 billion of notes priced March 23 at a spread of Treasuries plus 370 bps
|
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