By Stephanie N. Rotondo
Seattle, April 17 – Wells Fargo & Co. priced $600 million of $25-par series Y class A noncumulative perpetual preferred stock at par to yield 5.625%, a market source reported on Monday.
Price talk was 5.875%. The deal was increased from $250 million.
Wells Fargo Securities LLC is the bookrunner. BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, RBC Capital Markets, Morgan Stanley & Co. LLC and UBS Securities LLC are the joint lead managers.
The preferreds will be issued as depositary shares representing a 1/1,000th interest.
When declared, dividends will be paid on a quarterly basis. The preferreds become redeemable June 15, 2022 at par plus accrued dividends.
The issue can also be redeemed in whole upon a regulatory capital treatment event.
The new securities will be listed on the New York Stock Exchange under the ticker symbol “WFCPrY.”
Proceeds will be used for general corporate purposes, including investments in or advances to subsidiaries, debt repayments and reducing outstanding commercial paper and other debts.
Wells Fargo is a San Francisco-based bank.
| Issuer: | Wells Fargo & Co.
|
| Securities: | Series Y class A noncumulative preferred stock
|
| Amount: | $600 million
|
| Maturity: | Perpetual
|
| Bookrunner: | Wells Fargo Securities LLC
|
| Lead managers: | BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, RBC Capital Markets, Morgan Stanley & Co. LLC and UBS Securities LLC
|
| Dividend: | 5.625%
|
| Price: | Par of $25.00
|
| Yield: | 5.625%
|
| Talk: | 5.875%
|
| Call options: | On or after June 15, 2022 at par plus accrued dividends; or in whole upon a regulatory capital treatment event
|
| Pricing date: | April 17
|
| Settlement date: | April 24
|
| Expected listing: | NYSE: WFCPrY
|
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