By Marisa Wong and Cristal Cody
Los Angeles, Aug. 9 – Wells Fargo & Co. priced $2 billion of 4.54% fixed-to-floating rate sustainability senior notes due Aug. 15, 2026 on Monday, according to a market source.
The notes priced with a spread of 140 basis points above Treasuries. Initial price talk was in the Treasuries plus 165 bps area.
The notes are non-callable for three years.
Wells Fargo Securities LLC is the bookrunner.
According to a 424B2 previously filed with the Securities and Exchange Commission, the series U medium-term notes are classified as an inclusive communities and climate bond, with proceeds bookmarked for financing or refinancing loans or investments made by the company to support a combination of climate projects and inclusive communities projects. Inclusive communities and climate projects may include transactions originated or investments committed up to 24 months prior to the issuance of the notes.
The interest rate will be fixed until August 2025, when it converts to a floating rate based on compounded SOFR and a fixed spread, according to the 424B2 filing.
The filing had also stated that the notes would be callable at a make-whole price from August 2023 until August 2025 and then at par in whole in August 2025 or in whole or in part beginning July 2026.
The financial services company is based in San Francisco.
| Issuer: | Wells Fargo & Co.
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| Amount: | $2 billion
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| Issue: | Sustainability senior notes
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| Maturity: | Aug. 15, 2026
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| Bookrunner: | Wells Fargo Securities LLC
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| Coupon: | 4.54% initially, then converts to floating rate
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| Spread: | Treasuries plus 140 bps
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| Call option: | Non-callable for three years
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| Trade date: | Aug. 8
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| Price talk: | Treasuries plus 165 bps area
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| Cusip: | 95000U3C5
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