By Aleesia Forni
New York, March 16 – Wells Fargo Bank NA priced $2.5 billion of senior bank notes (Aa2/AA) on Wednesday in new and reopened tranches, a market source said.
A $2 billion tranche of 18-month floating-rate notes sold at par to yield Libor plus 55 basis points.
The notes sold on top of guidance set at Libor plus 55 bps and tighter than initial talk set in the 60 bps to 65 bps range over Libor.
A $500 million add-on to the bank’s existing 1.65% two-year notes priced at 100.034 to yield 1.631%, or Treasuries plus 65 bps.
The tranche sold on top of guidance and at the tight end of initial price thoughts in the 70 bps area over Treasuries.
Proceeds will be used for general corporate purposes.
Wells Fargo Securities LLC was the bookrunner.
The bank is based in San Francisco.
| Issuer: | Wells Fargo Bank NA
|
| Issue: | Senior bank notes
|
| Amount: | $2.5 billion
|
| Bookrunner: | Wells Fargo Securities LLC
|
| Trade date: | March 16
|
| Settlement date: | March 23
|
| Ratings: | Moody’s: Aa2
|
| Standard & Poor’s: AA
|
|
|
| 18-month floaters
|
| Amount: | $2 billion
|
| Maturity: | Sept. 7, 2017
|
| Coupon: | Libor plus 55 bps
|
| Price: | Par
|
| Yield: | Libor plus 55 bps
|
| Price guidance: | Libor plus 55 bps, tightened from Libor plus 60 bps to 65 bps
|
|
|
| Add-on to notes due 2018
|
| Amount: | $500 million
|
| Maturity: | Jan. 22, 2018
|
| Coupon: | 1.65%
|
| Price: | 100.034
|
| Yield: | 1.631%
|
| Spread: | Treasuries plus 65 bps
|
| Price guidance: | Treasuries plus 65 bps, tightened from Treasuries plus 70 bps area
|
| Total issue size: | $2 billion, including $1.5 billion priced on Jan. 22 at Treasuries plus 80 bps
|
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