By Jennifer Chiou
New York, May 1 - Wells Fargo & Co. announced that it remarketed $2.84 billion accreted principal amount of its $3 billion of floating-rate convertible senior debentures due 2033 on behalf of participating debenture holders.
Wells Fargo said the reset yield was 3.90213%, which equals the yield necessary to allow the remarketing agents to remarket all $2.84 billion of the debentures at a price sufficient to provide net proceeds equal to 100% of the debentures' accreted principal amount.
The remarketed price was 100.05% of the accreted principal amount.
The $2.84 billion figure represents the accreted value as of May 1 of $2.74 billion original principal amount of debentures, which are no longer convertible.
As already announced, holders of $256.62 million original principal amount of debentures indicated that they did not want to participate in the remarketing.
The debentures began accreting daily at a variable rate on May 1, 2008 when a remarketing reset event occurred. At that time, the yield was reset to 3.55175%.
The yield will be reset again on May 1, 2010.
If the debentures had not been successfully remarketed or if less than $50 million original principal amount of debentures were to be remarketed, the reset yield would be the rate necessary for the debentures to trade at a price equal to their accreted principal amount, according to a prior Securities and Exchange Commission filing.
In addition, Wells Fargo would have been required to purchase the debentures at 100% of their accreted principal amount if the remarketing was not successful.
Morgan Stanley & Co. Inc. (866 718-1649) and Goldman, Sachs & Co. (866 471-2526) are the remarketing agents.
Wells Fargo is a diversified financial services company based in San Francisco.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Remarketed senior debentures
|
| Amount: | $2,843,545,986.35 (the accreted value as of May 1 of $2,743,385,000 original amount of remarketed debentures)
|
| Maturity: | May 1, 2033
|
| Reset yield: | 3.90213%
|
| Price: | 100.05% of the accreted principal amount
|
| Pricing date: | May 1
|
| Settlement date: | May 6
|
| Reset date: | May 1, 2010 or next business day
|
| Agents: | Morgan Stanley & Co. Inc., Goldman, Sachs & Co.
|
| Fees: | 0.05%
|
| Ratings: | S&P: AA
|
| Moody's: A1
|
| Fitch: AA
|
| DBRS: AA
|
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