Published on 11/13/2012 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Wells Fargo sells upsized $600 million 5.125% noncumulative perpetual preferreds
By Stephanie N. Rotondo
Phoenix, Nov. 13- Wells Fargo & Co. priced $600 million of 5.125% series O noncumulative perpetual class A preferred stock, according to an FWP filed with the Securities and Exchange Commission on Tuesday.
The preferreds will be issued at depositary shares representing a 1/1,000th interest.
When declared, dividends will be paid on the 15th day of March, June, September and December, beginning March 15, 2013. The preferreds become redeemable in whole or in part on Dec. 15, 2017 at par plus accrued dividends.
Additionally, the shares can be called in whole upon the occurrence of a regulatory capital treatment event, also at par plus accrued.
The San Francisco-based bank will apply to list the new preferred shares on the New York Stock Exchange under the ticker symbol "WFCPO."
Wells Fargo Securities LLC is the bookrunner. Joint lead managers are Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and UBS Securities LLC.
Proceeds will be used for general corporate purposes.
| Issuer: | Wells Fargo & Co.
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| Securities: | Series O noncumulative class A preferred stock
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| Amount: | $600 million
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| Expected size: | $250 million
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| Greenshoe: | $90 million
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| Maturity: | Perpetual
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| Bookrunner: | Wells Fargo Securities LLC
|
| Lead managers: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC
|
| Co-managers: | BB&T Capital Markets (senior); Ameriprise Financial Services, Inc., Barclays, BNY Mellon Capital Markets, LLC, Capital One Southcoast, Inc., Comerica Securities, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, KeyBanc Capital Markets Inc., Lloyds TSB Bank plc, PNC Capital Markets LLC, RBC Capital Markets, LLC, RBS Securities Inc.
|
| Underwriters: | CastleOak Securities, LP, Lebenthal & Co., LLC, Loop Capital Markets LLC, Muriel Siebert & Co., Inc., Samuel A. Ramirez & Co. Inc., Williams Capital Group, LP
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| Dividend: | 5.125%
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| Price: | Par of $25.00
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| Yield: | 5.125%
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| Talk: | 5.125% to 5.25%
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| Call options: | On or after Dec. 15, 2017 or upon the occurrence of a regulatory capital treatment event, at par plus accrued dividends
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| Pricing date: | Nov. 13
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| Settlement date: | Nov. 20
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| Expected symbol: | NYSE: WFCPO
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| Cusip: | 949746721
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