By Andrea Heisinger
Omaha, May 13 - Wells Fargo Capital XIII priced $2.5 billion, or 2.5 million, of perpetual fixed-to-floating-rate normal preferred purchase securities at par of $1,000, according to an FWP filing with the Securities and Exchange Commission.
The securities have a distribution of 7.7% until March 26, 2013, then a floating rate of three-month Libor plus 389 basis points.
The securities start as interests in a trust made of junior subordinated notes and a purchase contract. On March 26, 2013, the purchase contract is exercised and the trust receives non-cumulative perpetual preferred stock instead.
The securities are callable beginning May 26, 2017.
Bookrunners were J.P. Morgan Securities Inc., UBS Investment Bank, Merrill Lynch, Pierce, Fenner & Smith Inc. and Morgan Stanley & Co. Inc.
Co-manager was Wells Fargo Brokerage Services, LLC.
The funding branch of Wells Fargo & Co. is based in San Francisco.
| Issuer: | Wells Fargo Capital XIII
|
| Issue: | Fixed-to-floating-rate normal preferred purchase securities
|
| Amount: | $2.5 billion (2.5 million securities)
|
| Maturity: | Perpetual
|
| Bookrunners: | J.P. Morgan Securities Inc., UBS Investment Bank, Merrill Lynch, Pierce, Fenner & Smith Inc., Morgan Stanley & Co. Inc.
|
| Co-manager: | Wells Fargo Brokerage Services, LLC
|
| Distribution: | 7.7% until March 26, 2013, then three-month Libor plus 389 bps
|
| Price: | Par of $1,000
|
| Call: | Beginning March 26, 2017
|
| Trade date: | May 12
|
| Settlement date: | May 19
|
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