By Andrea Heisinger
New York, Feb. 10 - Wells Fargo & Co. sold $2.501 billion of 3.676% five-year senior holding company notes on Thursday at a spread of 120 basis points over Treasuries, an informed source said late in the afternoon.
The notes (A1/AA-/AA-) priced at 100.6741 to yield 5.353%.
A source close to the sale said that the company, rather than do a remarketing of junior subordinated notes outstanding, opted to instead do an exchange offer with selling security holders Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. Inc. This resulted in the new issue so Wells Fargo would not have outstanding junior subordinated debt.
The dollar price is more than par because of accrued interest on the outstanding 5.2% notes from Sept. 15, 2010. The interest rate shifts to 3.676% on Feb. 15.
The financial services company is based in San Francisco.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Senior holding company notes
|
| Amount: | $2.501 billion
|
| Maturity: | June 15, 2016
|
| Selling security holders: | Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. Inc.
|
| Coupon: | 3.676% starting Feb. 15
|
| Price: | 100.6741
|
| Yield: | 3.535%
|
| Spread: | Treasuries plus 120 bps
|
| Call: | Non-callable
|
| Trade date: | Feb. 10
|
| Settlement date: | Feb. 15
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: AA-
|
| Fitch: AA-
|
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