8-KOther Events

WELLS FARGO & COMPANY/MN 8-K Report, Corporate Update (Sep 1, 2011)

Filed September 1, 2011For Securities:WFCWFC-PDWFC-PCWFC-PYWFC-PAWFC-PLWFCNPWFC-PZ

Summary

Wells Fargo & Company/MN (WFC) filed an 8-K on September 1, 2011, to announce the redemption of several trust preferred securities. This action is a direct result of the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which triggered a "Capital Treatment Event" as defined in the governing documents of these securities. The company will redeem these securities at 100% of their principal amount plus any accumulated and unpaid distributions. This redemption impacts approximately $5.777 billion in principal across four different trust securities, with redemptions scheduled for October 3, 2011. The funding for these redemptions will come from the company's existing cash on hand. This move signals a proactive step by Wells Fargo to manage its capital structure in light of new regulatory requirements.

Key Highlights

  • 1Wells Fargo is redeeming multiple trust preferred securities totaling approximately $5.777 billion in principal value.
  • 2The redemption is a consequence of a "Capital Treatment Event" triggered by the Dodd-Frank Act.
  • 3All affected securities will be redeemed at 100% of their principal amount, plus accrued distributions.
  • 4The scheduled redemption date for all affected securities is October 3, 2011.
  • 5The redemptions will be funded using Wells Fargo's existing cash reserves.
  • 6This action reflects Wells Fargo's response to the evolving regulatory landscape following the Dodd-Frank Act.

Frequently Asked Questions

Wells Fargo is redeeming these securities because the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act created a "Capital Treatment Event" as defined in the terms of these specific trust preferred securities. This event allows the company to redeem them.

The total principal amount being redeemed across the four listed securities is approximately $5.777 billion. This includes $837.5 million from Wachovia Capital Trust X, $2.5 billion from Wells Fargo Capital XIII, $690 million from Wells Fargo Capital XIV, and $1.75 billion from Wells Fargo Capital XV.

The redemption date for all of the affected securities is scheduled for October 3, 2011.

The company has stated that these redemptions will be funded using cash on hand at Wells Fargo & Company.