Published on 7/18/2023 in the Prospect News Investment Grade Daily.
New Issue: Wells Fargo sells $8.5 billion fixed-to-floaters due in six, 11 years
By Wendy Van Sickle
Columbus, Ohio, July 18 – Wells Fargo & Co. priced $8.5 billion of fixed-to-floating rate notes in two parts on Tuesday, according to two FWP filings with the Securities and Exchange Commission.
The company priced $4.25 billion of six-year notes with an initial coupon 5.574% for the first five years. After that, the rate will reset to a floating rate of SOFR plus 174 basis points. These notes priced at Treasuries plus 158 bps.
Wells Fargo also priced $4.25 billion of 11-year notes with an initial coupon 5.557% for the first 10 years. After that, the rate will reset to a floating rate of SOFR plus 199 bps. These notes priced at Treasuries plus 178 bps.
Wells Fargo Securities LLC is the bookrunner. Joint lead managers were Academy Securities, Inc., American Veterans Group, PBC, Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC.
Proceeds will be used for general corporate purposes.
The bank is based in San Francisco.
| Issuer: | Wells Fargo & Co.
|
| Amount: | $8.5 billion
|
| Issue: | Fixed-to-floating rate notes
|
| Bookrunner: | Wells Fargo Securities LLC
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| Joint lead managers: | Academy Securities, Inc., American Veterans Group, PBC, Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
|
| Senior co-managers: | C.L. King & Associates, Inc., Cabrera Capital Markets LLC, Independence Point Securities LLC, Penserra Securities LLC and Roberts & Ryan Investments, Inc.
|
| Co-managers: | Bancroft Capital, LLC, Mischler Financial Group, Inc., Tigress Financial Partners LLC, ABN Amro Securities (USA) LLC, BBVA Securities Inc., Credit Agricole Securities (USA) Inc., ING Financial Markets LLC, Intesa Sanpaolo SpA, Lloyds Securities Inc., Natixis Securities Americas LLC, NatWest Markets Securities Inc., SEB Securities, Inc., SG Americas Securities, LLC, Standard Chartered Bank, Westpac Capital Markets LLC, CastleOak Securities, LP, Drexel Hamilton, LLC, Falcon Square Capital LLC, AmeriVet Securities, Inc. and Apto Partners, LLC
|
| Trustee: | Computershare Trust Co., NA
|
| Trade date: | July 18
|
| Settlement date: | July 25
|
|
|
| Six-year notes
|
| Amount: | $4.25 billion
|
| Maturity: | July 25, 2029
|
| Coupon: | 5.574% initially; resets after five years to SOFR plus 174 bps
|
| Price: | Par
|
| Yield: | 5.574%
|
| Spread: | Treasuries plus 158 bps
|
| Call features: | Make-whole premium of 25 bps plus interest beginning Aug. 1, 2024 through July 24, 2028; redeemable in whole on the first par call date of July 25, 2028 or in whole or in part after June 22, 2029 at par plus interest in both cases
|
| Cusip: | 95000U3E1
|
|
|
| 11-year notes
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| Amount: | $4.25 billion
|
| Maturity: | July 25, 2034
|
| Coupon: | 5.557% initially; resets after 10 years to SOFR plus 199 bps
|
| Price: | Par
|
| Yield: | 5.557%
|
| Spread: | Treasuries plus 178 bps
|
| Call features: | Make-whole premium of 30 bps plus accrued interest starting Aug. 1, 2024 through July 24, 2033; redeemable in whole on the first par call date of July 25, 2033 or in whole or in part on or after April 25, 2034 at par plus interest in both cases
|
| Cusip: | 95000U3F8
|
|
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