Summary
This filing by Wells Fargo & Company (WFC) on May 13, 2011, primarily concerns the redemption of certain trust preferred securities. The company has issued redemption notices for four specific trust preferred securities totaling $34 million. These redemptions are a proactive step aligned with the company's capital plan submitted to the Federal Reserve Board and follow previous announcements made on March 18, 2011. The key implication for investors is that these trust preferred securities will no longer qualify as Tier 1 capital for Wells Fargo upon notice of redemption. This action is being funded by the company's available excess cash, suggesting a solid liquidity position. The redemptions are scheduled to occur between late June and early July 2011.
Key Highlights
- 1Wells Fargo is redeeming $34 million in trust preferred securities across four different trusts.
- 2The redemptions are part of Wells Fargo's approved capital plan submitted to the Federal Reserve.
- 3Upon redemption, these securities will cease to qualify as Tier 1 capital for Wells Fargo.
- 4The company stated that the redemptions will be funded using its excess cash.
- 5Redemption dates for the securities range from June 26, 2011, to July 8, 2011.
- 6This action is consistent with previous capital management announcements made by the company in March 2011.