New Issue: Wells Fargo prices $3.5 billion 3% 10-year senior notes at 130 bps over Treasuries

By Cristal Cody

Eureka Springs, Ark., Oct. 19 – Wells Fargo & Co. priced $3.5 billion of 3% 10-year senior notes on Wednesday with a spread of 130 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The notes (A2/A/AA-) priced at 99.769 to yield 3.027%.

Wells Fargo Securities, LLC was the bookrunner.

The notes priced tighter than initial price thoughts in the 140 bps to 145 bps area over Treasuries, according to a market source.

The deal was expected to price on Tuesday and was delayed until Wednesday’s session. S&P Global Ratings announced on Tuesday that it revised its outlook on the company to negative from stable.

Proceeds from the offering will be added to Wells Fargo’s general funds and will be available for general corporate purposes.

The retail, commercial and corporate banking services provider is based in San Francisco.

Issuer:	Wells Fargo & Co.
Amount:	$3.5 billion
Description:	Senior notes
Maturity:	Oct. 23, 2026
Bookrunner:	Wells Fargo Securities, LLC
Co-managers:	BB&T Capital Markets, BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., CIBC World Markets Corp., TD Securities (USA) LLC
Junior co-managers:	CastleOak Securities, LP, Drexel Hamilton, LLC, Samuel A. Ramirez & Co., Inc., Williams Capital Group, LP
Coupon:	3%
Price:	99.769
Yield:	3.027%
Spread:	Treasuries plus 130 bps
Trade date:	Oct. 19
Settlement date:	Oct. 25
Ratings:	Moody’s: A2
	S&P: A
	Fitch: AA-
Distribution:	SEC registered
Initial price guidance:	Treasuries plus 140 bps-145 bps area

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