Wells Fargo sells $600 million of 5.625% preferreds; TICC lists on Nasdaq; GSEs end mixed

By Stephanie N. Rotondo

Seattle, April 17 – The post-Easter trading week got started by throwing a new preferred stock deal into the mix, a market source reported on Monday.

As was expected, one of the banks that reported earnings on Thursday was the first to tap the market, as Wells Fargo & Co. brought $600 million of 5.625% $25-par series Y class A noncumulative perpetual preferred stock.

Ahead of pricing, a market source saw the issue quoted at $25.07 bid, $25.17 offered in the gray market.

Price talk was 5.875%. The deal was upsized from $250 million.

Wells Fargo Securities LLC is the bookrunner.

The San Francisco-based bank plans to use proceeds for general corporate purposes, including investments in or advances to subsidiaries, debt repayments and reducing outstanding commercial paper and other debts.

Meanwhile, TICC Capital Corp.’s $64.37 million of 6.5% $25-par notes due 2024 listed on the Nasdaq Global Select Market under the ticker symbol “TICCL.”

The notes ended at $25.20, which compared to opening levels at par.

As for more established secondary issues, GSEs were on the active side, but mixed.

Fannie Mae’s 8.25% series T noncumulative preferreds (OTCBB: FNMAT) dipped 2 cents to $5.98, while the 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) added 3 cents to finish at $6.16.

Freddie Mac’s 8.375% fixed-to-floating rate noncumulative preferreds (OTCBB: FMCKJ) declined 8 cents, or 1.46%, to $5.65.

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