By William Gullotti and Cristal Cody
Buffalo, N.Y., April 19 – Wells Fargo & Co. priced a $6.75 billion three-part offering of senior redeemable floating and fixed-to-floating rate notes on Monday, according to a 424B2 filing with the Securities and Exchange Commission and details from a market source.
The floating-rate series due 2026 is for $750 million and bears interest at SOFR plus 132 basis points. The floaters are not callable for the first three years.
The first fixed-to-floating rate series due 2026 is for $2.75 billion with the fixed interest rate set at 3.908%, which will later convert to SOFR plus 122 bps. The notes priced at Treasuries plus 125 bps, which was low to initial talk in the 140 bps to 145 bps area. The notes will feature a make-whole call from May 2023 until April 2025 and then a par call after that, initially in whole and then in whole or in part beginning in March 2026.
The second fixed-to-floating rate series, a $3.25 billion issue due 2053, has a fixed interest rate set at 4.611%, which will later convert to SOFR plus 213 bps. The notes priced at Treasuries plus 168 bps, which also came in below initial talk in the 185 bps area. The notes will feature a make-whole call from May 2023 until April 2052 and then a par call after that, initially in whole and then in whole or in part beginning in October 2052.
Wells Fargo Securities LLC is the bookrunner.
The bank is based in San Francisco.
| Issuer: | Wells Fargo & Co.
|
| Amount: | $6.75 billion
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| Bookrunner: | Wells Fargo Securities LLC
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| Pricing date: | April 18
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| Distribution: | SEC registered
|
|
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| Floating-rate notes
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| Amount: | $750 million
|
| Issue: | Senior redeemable floating-rate notes, series U
|
| Maturity: | April 25, 2026
|
| Coupon: | SOFR plus 132 bps
|
| Call option: | After three years
|
|
|
| 2026 fixed-to-floaters
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| Amount: | $2.75 billion
|
| Issue: | Senior redeemable fixed-to-floating rate notes, series U
|
| Maturity: | April 25, 2026
|
| Coupon: | 3.908%; resets to SOFR plus 122 bps
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Make-whole from May 2023 to April 2025, followed by a par call; in whole until March 2026, then in whole or in part
|
| Price talk: | Treasuries plus 140 bps to 145 bps area
|
|
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| 2053 fixed-to-floaters
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| Amount: | $3.25 billion
|
| Issue: | Senior redeemable fixed-to-floating rate notes, series U
|
| Maturity: | April 25, 2053
|
| Coupon: | 4.611%; resets to SOFR plus 213 bps
|
| Spread: | Treasuries plus 168 bps
|
| Call: | Make-whole from May 2023 to April 2052, followed by a par call; in whole until October 2052, then in whole or in part
|
| Price talk: | Treasuries plus 185 bps area
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