By Cristal Cody
Tupelo, Miss., April 23 – Wells Fargo & Co. priced $6.5 billion of medium-term senior redeemable fixed-to-floating rate notes (A2/A-/A+) in two tranches on Thursday, according to a market source.
A $3 billion tranche of 2.188% notes due April 30, 2026 priced at a spread of 183 basis points over Treasuries. Initial price talk was in the Treasuries plus 215 bps spread area.
The fixed rate on the notes will convert in April 2025 to a floating rate of SOFR plus 200 bps.
Wells Fargo priced $3.5 billion of 3.068% notes due April 30, 2041 at a spread of 190 bps over Treasuries. Initial price talk was in the Treasuries plus 220 bps area.
The rate will reset in April 2040 to a floating rate of SOFR plus 253 bps.
Wells Fargo Securities LLC was the bookrunner.
The financial services company is based in San Francisco.
| Issuer: | Wells Fargo & Co.
|
| Amount: | $6.5 billion
|
| Description: | Series U medium-term senior redeemable fixed-to-floating rate notes
|
| Bookrunner: | Wells Fargo Securities LLC
|
| Trade date: | April 23
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Six-year notes
|
| Amount: | $3 billion
|
| Maturity: | April 30, 2026
|
| Coupon: | 2.188%; resets in April 2025 to floating rate of SOFR plus 200 bps
|
| Spread: | Treasuries plus 183 bps
|
| Price guidance: | Treasuries plus 215 bps area
|
|
|
| 31-year notes
|
| Amount: | $3.5 billion
|
| Maturity: | April 30, 2041
|
| Coupon: | 3.068%; resets in April 2040 to floating rate of SOFR plus 253 bps
|
| Spread: | Treasuries plus 190 bps
|
| Price guidance: | Treasuries plus 220 bps area
|
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