Published on 10/17/2023 in the Prospect News Investment Grade Daily.
New Issue: Wells Fargo sells $6 billion of fixed-to-floating medium-term notes in two parts
By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Oct. 17 – Wells Fargo & Co. sold two tranches of senior redeemable fixed-to-floating rate notes, series W, totaling $6 billion, on Monday, according to final pricing supplements filed with the Securities and Exchange Commission and a market source.
The company priced the $2.75 billion of senior notes due Oct. 23, 2029 with an initial coupon of 6.303% for the first five years, until Oct. 23, 2028. After that, the rate will reset to a floating rate of SOFR plus 179 basis points. These notes priced at Treasuries plus 160 bps after being talked at Treasuries plus 185 bps area.
Additionally, the company priced the $3.25 billion of senior notes due Oct. 23, 2034 with an initial coupon of 6.491% for the first 10 years, until Oct. 23, 2033. After that, the rate will reset to a floating rate of SOFR plus 206 bps. These notes priced at Treasuries plus 180 bps after talk in the Treasuries plus 205 bps area.
Each tranche of notes will feature a make-whole period starting in October. Before the first par call date of Oct. 23, 2028, the 2029 notes may be redeemed at Treasuries plus 25 bps. Alternatively, before the first par call date of Oct. 23, 2033, the 2034 notes may be redeemed at Treasuries plus 30 bps.
Wells Fargo Securities, LLC was the sole bookrunner.
Joint lead managers were ANZ Securities, Inc., BBVA Securities Inc., nabSecurities, LLC, Natixis Securities Americas LLC, CastleOak Securities, LP, Loop Capital Markets LLC, R. Seelaus & Co., LLC and Samuel A. Ramirez & Co., Inc.
Computershare Trust Co., NA is the security registrar.
The financial services company is based in San Francisco.
| Issuer: | Wells Fargo & Co.
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| Amount: | $6 billion
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| Issue: | Senior redeemable fixed-to-floating rate notes, series W
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| Bookrunner: | Wells Fargo Securities, LLC
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| Joint lead managers: | ANZ Securities, Inc., BBVA Securities Inc., nabSecurities, LLC, Natixis Securities Americas LLC, CastleOak Securities, LP, Loop Capital Markets LLC, R. Seelaus & Co., LLC and Samuel A. Ramirez & Co., Inc.
|
| Senior co-managers: | Blaylock Van, LLC, Cabrera Capital Markets LLC, Roberts & Ryan Investments, Inc. and Telsey Advisory Group LLC
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| Co-managers: | Apto Partners LLC, CAVU Securities, LLC, C.L. King & Associates, Inc., Guzman & Co., Independence Point Securities LLC, MFR Securities, Inc., Multi-Bank Securities, Inc., Penserra Securities LLC, Siebert Williams Shank & Co., LLC, Stern Brothers & Co., Tigress Financial Partners LLC, ABN Amro Securities (USA) LLC, BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., CIBC World Markets Corp., Credit Agricole Securities (USA) Inc., Huntington Securities, Inc., Scotia Capital (USA) Inc., ING Financial Markets LLC, Intesa Sanpaolo IMI Securities Corp., Lloyds Securities Inc., MUFG Securities Americas Inc., RBC Capital Markets, LLC, SG Americas Securities, LLC, TD Securities (USA) LLC, Truist Securities, Inc. and Falcon Square Capital LLC
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| Trade date: | Oct. 16
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| Settlement date: | Oct. 23
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|
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| 2029 notes
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| Amount: | $2.75 billion
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| Maturity: | Oct. 23, 2029
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| Coupon: | 6.303% initially; resets to SOFR plus 179 bps on Oct. 23, 2028
|
| Price: | Par
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| Yield: | 6.303%
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| Spread: | Treasuries plus 160 bps
|
| Call features: | At Treasuries plus 25 bps before Oct. 23, 2028; after at par
|
| Price talk: | Treasuries plus 185 bps area
|
| Cusip: | 95000U3G6
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|
|
| 2034 notes
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| Amount: | $3.25 billion
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| Maturity: | Oct. 23, 2034
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| Coupon: | 6.491% initially; resets to SOFR plus 206 bps on Oct. 23, 2033
|
| Price: | Par
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| Yield: | 6.491%
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| Spread: | Treasuries plus 180 bps
|
| Call features: | At Treasuries plus 30 bps before Oct. 23, 2033; after at par
|
| Price talk: | Treasuries plus 205 bps area
|
| Cusip: | 95000U3H4
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