By Stephanie N. Rotondo
Phoenix, July 15 - Wells Fargo & Co. priced $1.5 billion of 5.85% fixed-to-floating-rate series Q class A noncumulative perpetual preferred stock, according to a market source on Monday.
The preferreds had been talked with a dividend in the 6% area.
The stock will be issued as depositary shares representing a 1/1,000th interest.
Wells Fargo Securities LLC is the bookrunner.
The dividend will be fixed until Sept. 15, 2023, when the issue will begin paying a floating rate of Libor plus 309 basis points. When declared, dividends will be paid on the 15th of March, June, September and December, beginning Sept. 15.
The preferreds become redeemable on Sept. 15, 2023 at par plus accrued dividends. The company can call the securities prior to that date upon the occurrence of a regulatory capital treatment event at par plus any declared dividends, but no accumulated dividends.
The San Francisco-based bank has applied to list the shares on the New York Stock Exchange under the ticker symbol "WFCPQ."
Proceeds will be used for general corporate purposes.
| Issuer: | Wells Fargo & Co.
|
| Securities: | Series Q class A noncumulative preferred stock
|
| Amount: | $1.5 billion
|
| Maturity: | Perpetual
|
| Bookrunner: | Wells Fargo Securities LLC
|
| Lead managers: | BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., JPMorgan Securities LLC, Morgan Stanley & Co. Inc. and UBS Securities LLC
|
| Dividend: | 5.85% until Sept. 15, 2023, then Libor plus 309 bps
|
| Talk: | 6% area
|
| Price: | Par of $25
|
| Yield: | 5.85%
|
| Call options: | On or after Sept. 15, 2023 at par plus accrued dividends; before that date in the event of a regulatory capital treatment event at par plus any declared dividends
|
| Pricing date: | July 15
|
| Settlement date: | July 20
|
| Expected listing: | NYSE: WFCPQ
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
