Published on 1/20/2016 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Wells Fargo prices $875 million perpetual class A preferred stock
By Christine Van Dusen
Atlanta, Jan. 20 – Wells Fargo & Co. priced an $875 million issue of non-cumulative perpetual class A preferred stock, series W, at par of $25.00 on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The issue included 35 million depositary shares, each representing a 1/1,000th interest in a share of non-cumulative perpetual class A preferred stock.
There is a $125 million over-allotment option.
The preferreds are callable on any interest payment date beginning March 15, 2021 at par plus accrued dividends.
Wells Fargo & Co. LLC was the bookrunner. The joint lead managers were Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets and UBS Securities LLC.
The dividend rate is 5.7%, payable on March 15, June 15, Sept. 15 and Dec. 15 of each year.
| Issuer: | Wells Fargo & Co.
|
| Description: | Non-cumulative perpetual class A preferred stock, series W
|
| Amount: | $875 million (35 million shares)
|
| Greenshoe: | $125 million (5 million shares)
|
| Maturity: | Perpetual
|
| Bookrunner: | Wells Fargo Securities LLC
|
| Joint lead managers: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets, UBS Securities LLC
|
| Underwriters: | C.L. King & Associates, Inc.. Drexel Hamilton, LLC, Samuel A. Ramirez & Co., Inc., Siebert Brandford Shank & Co., LLC
|
| Dividend: | 5.7%
|
| Price: | Par of $25.00
|
| Yield: | 5.7%
|
| Liquidation preference: | $25.00
|
| Dividend payment dates: | March 15, June 15, Sept. 15, Dec. 15
|
| Call feature: | On dividend payment dates beginning March 15, 2021 at par plus accrued dividends
|
| Trade date: | Jan. 19
|
| Settlement date: | Jan. 29
|
| Listing: | NYSE: WFCPrW
|
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