Published on 4/15/2024 in the Prospect News Investment Grade Daily.
New Issue: Wells Fargo prices $4.25 billion of floaters, fixed-to-floaters
By Wendy Van Sickle
Columbus, Ohio, April 15 – Wells Fargo & Co. priced a $4.25 billion two-part offering of senior redeemable floating- and fixed-to-floating rate notes on Monday, according to 424B2 filings with the Securities and Exchange Commission.
The floating-rate series is for $1 billion due April 22, 2028 and bears interest at SOFR plus 107 basis points. The floaters will be redeemable in whole on a date in April 2027 and in whole or in part beginning on a date in March 2028, in both cases at par.
The fixed-to-floating rate series due 2028 is for $3.25 billion with the fixed interest rate set at 5.707%, which will later convert to SOFR plus 107 bps. The notes priced at Treasuries plus 95 bps. The notes will feature a make-whole call from April 29, 2025 through April 21, 2027 at Treasuries plus 15 bps; and then a par call after that, initially in whole and then in whole or in part beginning in March 2028.
Both tranches priced at par.
Wells Fargo Securities LLC is the bookrunner. Joint lead managers are American Veterans Group, PBC, CastleOak Securities, LP, Drexel Hamilton, LLC and Roberts & Ryan, Inc.
The financial services company is based in San Francisco.
| Issuer: | Wells Fargo & Co.
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| Amount: | $4.25 billion
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| Bookrunner: | Wells Fargo Securities LLC
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| Joint lead managers: | American Veterans Group, PBC, CastleOak Securities, LP, Drexel Hamilton, LLC and Roberts & Ryan, Inc.
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| Senior co-managers: | Apto Partners, LLC, Independence Point Securities LLC, Penserra Securities LLC, Samuel A. Ramirez & Co., Inc., ABN Amro Capital Markets (USA) LLC, ANZ Securities, Inc., BBVA Securities Inc., Credit Agricole Securities (USA) Inc., ING Financial Markets LLC, Intesa Sanpaolo IMI Securities Corp., MUFG Securities Americas Inc., Natixis Securities Americas LLC, Nordea Bank Abp, SEB Securities, Inc., SG Americas Securities, LLC, Standard Chartered Bank and Westpac Capital Markets LLC
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| Co-managers: | Bancroft Capital, LLC, C.L. King & Associates, Inc., Falcon Square Capital LLC, Mischler Financial Group, Inc., Multi-Bank Securities, Inc. and Siebert Williams Shank & Co., LLC
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| Paying agent: | Computershare Trust Co., NA
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| Pricing date: | April 15
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| Issue date: | April 22
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| Distribution: | SEC registered
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|
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| Floating-rate notes
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| Amount: | $1 billion
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| Issue: | Senior redeemable floating-rate notes, series W
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| Maturity: | April 22, 2028
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| Coupon: | SOFR plus 107 bps
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| Price: | Par
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| Yield: | SOFR plus 107 bps
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| Call option: | In whole on April 22, 2027 and in whole or in part beginning on or after March 22, 2028, in both cases at par
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| Cusip: | 95000U3M3
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| Fixed-to-floaters
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| Amount: | $3.25 billion
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| Issue: | Senior redeemable fixed-to-floating rate notes, series W
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| Maturity: | April 22, 2028
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| Coupon: | 5.707%; resets to SOFR plus 107 bps
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| Price: | Par
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| Spread: | Treasuries plus 95 bps
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| Call: | Make-whole call from April 29, 2025 through April 21, 2027 at Treasuries plus 15 bps; in whole on April 22, 2027 and in whole or in part beginning March 22, 2028, in both cases at par
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| Cusip: | 95000U3L5
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