By Cristal Cody
Tupelo, Miss., Feb. 4 – Wells Fargo & Co. priced $6 billion of registered medium-term notes (A2/A-/A+) in two tranches on Tuesday, according to a market source.
A $3 billion tranche of 2.164% senior redeemable fixed-to-floating rate notes due Feb. 11, 2026 priced at a spread of 75 basis points over Treasuries. The notes were initially talked to price in the Treasuries plus 90 bps to 95 bps area.
The rate on the notes will convert in February 2025 to a floating rate of Libor plus 73 bps.
Wells Fargo sold $3 billion of 2.572% senior redeemable fixed-to-floating rate notes due Feb. 11, 2031 at a spread of Treasuries plus 98 bps. Initial price talk was in the Treasuries plus 115 bps to 120 bps area.
The rate on the 2031 notes will be reset in February 2030 to a floating rate of Libor plus 100 bps.
Wells Fargo Securities LLC was the bookrunner on the deal.
The financial services company is based in San Francisco.
| Issuer: | Wells Fargo & Co.
|
| Amount: | $6 billion
|
| Description: | Series Q medium-term notes
|
| Bookrunner: | Wells Fargo Securities LLC
|
| Trade date: | Feb. 4
|
| Settlement date: | Feb. 11
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Six-year notes
|
| Amount: | $3 billion
|
| Maturity: | Feb. 11, 2026
|
| Description: | Senior redeemable fixed-to-floating rate notes
|
| Coupon: | 2.164%; resets in February 2025 to floating rate of Libor plus 73 bps
|
| Spread: | Treasuries plus 75 bps
|
| Price guidance: | Treasuries plus 90 bps-95 bps area
|
|
|
| 11-year notes
|
| Amount: | $3 billion
|
| Maturity: | Feb. 11, 2031
|
| Description: | Senior redeemable fixed-to-floating rate notes
|
| Coupon: | 2.572%; resets in February 2030 to floating rate of Libor plus 100 bps
|
| Spread: | Treasuries plus 98 bps
|
| Price guidance: | Treasuries plus 115 bps-120 bps area
|
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