New Issue: Wells Fargo sells $4 billion redeemable six-year fixed-to-floaters

By Cristal Cody

Chicago, March 18 – Wells Fargo & Co. sold $4 billion of senior redeemable fixed-to-floating rate notes with a six-year tenor on Thursday, according to a 424B2 filing with the Securities and Exchange Commission and more details from a market source.

The notes start with an initial interest rate at 3.526% until the final year when the rate will float at SOFR plus 151 basis points.

Pricing at par, the notes came with a 137.5 bps spread atop Treasures against price talk in the 160 bps area.

The fixed-to-floaters are callable in whole or in part at any time at a make-whole price of Treasuries plus 25 bps. They are also callable at par in whole in March 2027 or in whole or in part beginning in February 2028.

The bank was preparing a two-part offering, which included senior redeemable floating-rate notes. However, the floating-rate tranche was dropped from the final deal.

Wells Fargo Securities LLC is the bookrunner.

The bank is based in San Francisco.

Issuer:	Wells Fargo & Co.
Amount:	$4 billion
Issue:	Senior redeemable fixed-to-floating rate notes
Maturity:	March 24, 2028
Bookrunner:	Wells Fargo Securities LLC
Joint lead managers:	American Veterans Group, PBC, Penserra Securities LLC, R. Seelaus & Co., LLC and Siebert Williams Shank & Co., LLC
Senior co-managers:	Bancroft Capital, LLC, BMO Nesbitt Burns Inc., Cabrera Capital Markets LLC, Capital One Securities, Inc., Citizens Capital Markets, Inc., Commonwealth Bank of Australia, Fifth Third Securities, Inc., KeyBanc Capital Markets Inc., MFR Securities, Inc., Multi-Bank Securities, Inc., nabSecurities, LLC and National Bank of Canada Financial Inc.
Co-managers:	AmeriVet Securities, Inc., BBVA Securities Inc., CAVU Securities, LLC, ING Financial Markets LLC, Intesa Sanpaolo SpA, Natixis Securities Americas LLC, Roberts & Ryan Investments, Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, Standard Chartered Bank, TD Securities (USA) LLC and Telsey Advisory Group LLC
Counsel to issuer:	Faegre Drinker Biddle & Reath LLP
Coupon:	3.526% starting rate, converts to SOFR plus 151 bps starting March 24, 2027
Price:	Par
Yield:	3.526%
Spread:	Treasuries plus 137.5 bps
Call features:	Make-whole call at Treasuries plus 25 bps until March 23, 2027; at par on March 24, 2027 and then any time at par after Feb. 23, 2028
Trade date:	March 17
Settlement date:	March 24
Distribution:	SEC registered
Price talk:	Treasuries plus 160 bps area
Cusip:	95000U2V4

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