Published on 1/25/2021 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Wells Fargo sells $1 billion 4.375% non-cumulative perpetual preferreds
By Taylor Fox
New York, Jan. 25 – Wells Fargo & Co. priced a $1 billion offering of $25-par series CC non-cumulative perpetual class A preferred stock with dividends of 4.375% at par on Monday, according to an FWP filing with the Securities and Exchange Commission.
There is a $150 million over-allotment option.
Wells Fargo Securities, LLC is the bookrunner. Joint lead managers are BofA Securities Inc., J.P Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets Corp., UBS Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and TD Securities (USA) LLC.
The preferreds are redeemable on or after March 15, 2026 at par or may be redeemed in whole before that date upon the incurrence of a regulatory capital treatment event at par.
Dividends will be payable quarterly on the 15th day of March, June, September and December, beginning March 15.
Wells Fargo has applied for listing of the preferreds on the New York Stock Exchange under the symbol “WFCPrC.”
Wells Fargo plans to use the proceeds for general corporate purposes, including redeeming some or all of its outstanding preferred stock and related depositary shares.
Wells Fargo is a San Francisco-based financial services company.
| Issuer: | Wells Fargo & Co.
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| Description: | Series CC non-cumulative perpetual class A preferred stock
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| Amount: | $1 billion
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| Maturity: | Perpetual
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| Bookrunner: | Wells Fargo Securities, LLC
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| Lead managers: | BofA Securities Inc., J.P Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets Corp., UBS Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and TD Securities (USA) LLC
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| Co-managers: | Academy Securities, Inc., American Veterans Group, PBC, AmeriVet Securities, Inc., Cabrera Capital Markets LLC, CastleOak Securities LP, Drexel Hamilton, LLC, Great Pacific Securities, Penserra Securities LLC, R. Seelaus & Co., LLC and Samuel A. Ramirez & Co., Inc.
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| Dividend: | 4.375%
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| Price: | Par of $25.00
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| Yield: | 4.375%
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| Call: | On or after March 15, 2026 at par
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| Pricing date: | Jan. 25
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| Settlement date: | Feb. 1
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| Distribution: | SEC registered
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| Listing: | NYSE: WFCPrC
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