By Aleesia Forni
New York, Feb. 26 – Wells Fargo & Co. priced $3.75 billion of five-year notes (A2/A/AA-) on Friday in fixed- and floating-rate tranches, according to an informed source and an FWP filed with the Securities and Exchange Commission.
There was $2.75 billion of 2.5% fixed-rate notes sold at 99.977 to yield 2.505%, or Treasuries plus 125 basis points.
A $1 billion floating-rate piece sold at par to yield Libor plus 134 bps.
The fixed-rate tranche was initially talked in the area of 137.5 bps over Treasuries before being tightened to a 125 bps spread, and the floaters were talked at the Libor equivalent to the fixed-rate tranche.
Proceeds will be used for general corporate purposes.
Wells Fargo Securities LLC is the bookrunner.
The bank is based in San Francisco.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Senior holding company notes
|
| Amount: | $3.75 billion
|
| Bookrunner: | Wells Fargo Securities LLC
|
| Co-managers: | BB&T Capital Markets, BNP Paribas Securities Corp., Capital One Securities Inc., Desjardins Securities Inc., National Bank of Canada Financial Inc., Scotia Capital (USA) Inc.
|
| Junior co-managers: | Blaylock Beal Van LLC, Drexel Hamilton LLC, Lebenthal & Co. LLC, Williams Capital Group LP
|
| Trade date: | Feb. 26
|
| Settlement date: | March 4
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Fitch: AA-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $2.75 billion
|
| Maturity: | March 4, 2021
|
| Coupon: | 2.5%
|
| Price: | 99.977
|
| Yield: | 2.505%
|
| Spread: | Treasuries plus 125 bps
|
| Price guidance: | Treasuries plus 125 bps, tightened from Treasuries plus 137.5 bps area
|
|
|
| Five-year floaters
|
| Amount: | $1 billion
|
| Maturity: | March 4, 2021
|
| Coupon: | Libor plus 134 bps
|
| Price: | Par
|
| Yield: | Libor plus 134 bps
|
| Price guidance: | Libor equivalent to five-year fixed-rate notes
|
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