Published on 2/23/2022 in the Prospect News Investment Grade Daily.
New Issue: Wells Fargo sells $3.5 billion fixed-to-floaters due 2033
By Cristal Cody
Chicago, Feb. 23 – Wells Fargo & Co. sold $3.5 billion of fixed-to-floating-rate notes with an 11-year tenor on Wednesday, according to a market source and a 424B2 filing with the Securities and Exchange Commission.
The starting rate is 3.35%. In the final year, the rate converts to SOFR plus 150 basis points with quarterly resets until the maturity date.
The notes priced at par with a Treasuries plus 138 bps spread, lower than initial talk in the Treasuries plus 160 bps area.
The notes feature a make-whole call at Treasuries plus a 25 bps spread until Dec. 2, 2032 and then are callable at par. The notes also have a par call on March 2, 2032 when the notes can only be redeemed in whole.
Wells Fargo Securities LLC is the bookrunner.
Listed joint lead managers are Academy Securities, Inc., Drexel Hamilton, LLC, Samuel A. Ramirez & Co., Inc. and Stern Brothers & Co.
The bank is based in San Francisco.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Senior redeemable fixed-to-floating-rate notes
|
| Amount: | $3.5 billion
|
| Maturity: | March 2, 2033
|
| Bookrunner: | Wells Fargo Securities LLC
|
| Joint lead managers: | Academy Securities, Inc., Drexel Hamilton, LLC, Samuel A. Ramirez & Co., Inc. and Stern Brothers & Co.
|
| Senior co-managers: | AmeriVet Securities, Inc., Apto Partners, LLC, BBVA Securities Inc., Blaylock Van, LLC, CastleOak Securities, LP, CIBC World Markets Corp., Credit Agricole Securities (USA) Inc., DBS Bank Ltd., ING Financial Markets LLC, Intesa Sanpaolo SpA, Lloyds Securities Inc., Natixis Securities Americas LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC, Standard Chartered Bank and TD Securities (USA) LLC
|
| Co-managers: | C.L. King & Associates, Inc., Great Pacific Securities, Loop Capital Markets LLC and Tigress Financial Partners LLC
|
| Coupon: | 3.35% starting rate; resets quarterly starting March 2, 2032 at SOFR plus 150 bps
|
| Price: | Par
|
| Yield: | 3.35%
|
| Spread: | Treasuries plus 138 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps until Dec. 2, 2032; after Dec. 2, 2032 par call; par call in whole on just March 2, 2032
|
| Trade date: | Feb. 23
|
| Settlement date: | March 2
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 160 bps area
|
| Cusip: | 95000U2U6
|
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