Wells Fargo buys back €502.2 million 6% notes in oversubscribed offer

By Susanna Moon

Chicago, Dec. 19 - Wells Fargo Bank, NA said that investors tendered €674.2 million principal amount of its €1.5 billion of 6% notes due May 23, 2013 as of the offer deadline at noon ET on Dec. 16 and that it decided to accept €502.2 million of the notes with a scaling factor of 75%.

The company will purchase the notes at 105.72476, according to a company press release.

Pricing was set at 6 a.m. ET on Dec. 19 using the interpolated euro mid-swap rate of 1.427% plus 45 basis points for a purchase yield of 1.877%. Accrued interest will be 3.45902%.

Wells Fargo said on Dec. 8 that it began the tender offer for some of its 6% notes to reduce short-term debt with cash on hand.

The bank targeted a purchase amount of up to €500 million of the notes but said the total purchase amount could be "significantly less" or "significantly more" in a previous press release. If the offer were oversubscribed, the notes would be accepted for purchase on a pro rata basis.

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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