Published on 10/25/2019 in the Prospect News Investment Grade Daily.
New Issue: Wells Fargo details $6.5 billion two-part offering of fixed-to-floating-rate notes
By Cristal Cody
Tupelo, Miss., Oct. 25 – Wells Fargo & Co. provided additional details of its previously reported $6.5 billion sale of senior medium-term notes (A2/A-/A+) in 424B2 filings with the Securities and Exchange Commission on Friday.
A $3 billion tranche of 2.406% fixed-to-floating-rate notes due Oct. 20, 2025 priced Thursday at par to yield a spread of 82 basis points over Treasuries. The notes were initially talked to print in the Treasuries plus 100 bps to 105 bps spread area.
The rate on the notes will convert to a floating rate of Libor plus 82.5 bps on Oct. 30, 2024.
Wells Fargo sold $3.5 billion of 2.879% notes due Oct. 30, 2030 at par to yield a spread of Treasuries plus 112 bps. Initial talk was in the Treasuries plus 125 bps to 130 bps area.
The rate on the 2030 notes will convert to a floating rate of Libor plus 117 bps on Oct. 30, 2029.
Wells Fargo Securities LLC was the bookrunner.
The financial services company is based in San Francisco.
| Issuer: | Wells Fargo & Co.
|
| Amount: | $6.5 billion
|
| Description: | Series Q senior medium-term notes
|
| Bookrunner: | Wells Fargo Securities LLC
|
| Senior co-managers: | BMO Capital Markets Corp., Capital One Securities, Inc., Citizens Capital Markets, Inc., KeyBanc Capital Markets Inc., MUFG and RBC Capital Markets, LLC
|
| Co-managers: | FTN Financial Securities Corp., ICBC Standard Bank plc, Regions Securities LLC and Santander Investment Securities Inc.
|
| Junior co-managers: | Academy Securities, Inc., Apto Partners, LLC, Cabrera Capital Markets LLC, Drexel Hamilton, LLC, Multi-Bank Securities, Inc., Penserra Securities LLC, Roberts & Ryan Investments, Inc. and R. Seelaus & Co., LLC
|
| Trade date: | Oct. 24
|
| Settlement date: | Oct. 31
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Six-year notes
|
| Amount: | $3 billion
|
| Maturity: | Oct. 20, 2025
|
| Coupon: | 2.406%; resets Oct. 30, 2024 to floating rate of Libor plus 82.5 bps
|
| Price: | Par
|
| Yield: | 2.406%
|
| Spread: | Treasuries plus 82 bps
|
| Call features: | Make-whole call before Oct. 29, 2024 at Treasuries plus 15 bps; thereafter at par
|
| Price guidance: | Treasuries plus 100 bps-105 bps area
|
|
|
| Eleven-year notes
|
| Amount: | $3.5 billion
|
| Maturity: | Oct. 30, 2030
|
| Coupon: | 2.879%; resets Oct. 30, 2029 to floating rate of Libor plus 117 bps
|
| Price: | Par
|
| Yield: | 2.879%
|
| Spread: | Treasuries plus 112 bps
|
| Call features: | Make-whole call before Oct. 29, 2029 at Treasuries plus 20 bps; thereafter at par
|
| Price guidance: | Treasuries plus 125 bps-130 bps area
|
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