By Aleesia Forni
Virginia Beach, July 15 – Wells Fargo & Co. priced on Wednesday $6 billion of holding company notes in senior and subordinated tranches due 2020 and 2027, a market source said.
There was $2.75 billion of 2.6% five-year senior holding company notes (A2/A+/AA-) that priced at 99.944 to yield 2.612%, or Treasuries plus 100 basis points.
The notes sold on top of guidance, which had tightened from the Treasuries plus 110 bps area.
Also priced was $750 million five-year floating-rate senior holding company notes (A2/A+/AA-) at par to yield Libor plus 88 bps.
Guidance was at the Libor equivalent to the five-year fixed-rate notes.
Finally, $2.5 billion of 4.3% subordinated holding company notes (A3/A/A+) priced at 99.62 to yield 4.341% with a spread of Treasuries plus 200 bps.
Pricing was on top of talk. Initial guidance was in the 205 bps to 210 bps range over Treasuries.
Wells Fargo Securities LLC was the bookrunner.
The bank is based in San Francisco.
| Issuer: | Wells Fargo & Co.
|
| Amount: | $6 billion
|
| Bookrunners: | Wells Fargo Securities LLC
|
| Trade date: | July 15
|
| Settlement date: | July 22
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $2.75 billion
|
| Issue: | Senior holding company notes
|
| Maturity: | July 22, 2020
|
| Coupon: | 2.6%
|
| Price: | 99.944
|
| Yield: | 2.612%
|
| Spread: | Treasuries plus 100 bps
|
| Price guidance: | Treasuries plus 100 bps, tightened from Treasuries plus 110 bps area
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A+
|
| Fitch: AA-
|
|
|
| Five-year floaters
|
| Amount: | $750 million
|
| Issue: | Senior holding company notes
|
| Maturity: | July 22, 2020
|
| Coupon: | Libor plus 88 bps
|
| Price: | Par
|
| Yield: | Libor plus 88 bps
|
| Price guidance: | Libor equivalent to fixed-rate notes
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A+
|
| Fitch: AA-
|
|
|
| 12-year notes
|
| Amount: | $2.5 billion
|
| Issue: | Subordinated holding company notes
|
| Maturity: | July 22, 2027
|
| Coupon: | 4.3%
|
| Price: | 99.62
|
| Yield: | 4.341%
|
| Spread: | Treasuries plus 200 bps
|
| Price guidance: | Treasuries plus 200 bps, tightened from Treasuries plus 205 bps to 210 bps
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: A
|
| Fitch: A+
|
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