Wells Fargo aims to buy back about €500 million 6% notes under offer

By Susanna Moon

Chicago, Dec. 8 - Wells Fargo Bank, NA said it began a tender offer for some of its €1.5 billion of 6% notes due May 23, 2013 to reduce short-term debt with cash on hand.

The bank is targeting a purchase amount of up to €500 million of the notes, but the total purchase amount may be "significantly less" or "significantly more," according to the bank's press release. If the offer is oversubscribed, the notes may be accepted for purchase on a pro rata basis.

The purchase price will be set using the interpolated euro mid-swap rate plus 45 basis points.

The bank also will pay accrued interest.

The offer will run until noon ET on Dec. 16. Pricing will be set at 6 a.m. ET on Dec. 19.

Settlement is expected to occur on Dec. 20.

Any notes purchased by the bank under the offer will be canceled.

Credit Suisse Securities (Europe) Ltd. (+44 20 7883 8763, attn: liability management group, e-mail: liability.management@credit-suisse.com) and Wells Fargo Securities International Ltd. (+44 20 7149 8481, attn: European debt capital markets syndicate, e-mail: bryant.h.owens@wellsfargo.com) are the dealer managers.

Lucid Issuer Services Ltd. (+44 20 7704 0880, attn: Thomas Choquet / Sunjeeve Patel, or e-mail wellsfargo@lucid-is.com) is the tender agent.

The financial services company is based in San Francisco.

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