Summary
This 8-K filing from Wells Fargo & Company (WFC) on March 14, 2012, announces the redemption of $875 million in Trust Preferred Securities issued by Wachovia Capital Trust IV, with a redemption date of April 13, 2012. These securities, with a 6.375% interest rate, will be repurchased at their liquidation amount plus accrued distributions. The company stated that this action is part of its approved capital plan and will be funded by existing cash reserves. Crucially for investors, the redemption of these securities means they will no longer count towards Wells Fargo's Tier 1 capital under regulatory guidelines. This move is strategic, aligning with the company's capital management objectives and regulatory requirements following its capital plan submission to the Federal Reserve.
Key Highlights
- 1Wells Fargo is redeeming $875 million of Wachovia Capital Trust IV 6.375% Trust Preferred Securities.
- 2The redemption date is scheduled for April 13, 2012.
- 3Securities will be redeemed at 100% of their liquidation amount plus accumulated unpaid distributions.
- 4The redemption is consistent with Wells Fargo's capital plan submitted to the Federal Reserve.
- 5This action will be funded by excess cash currently available to the company.
- 6Upon redemption, these securities will no longer qualify as Tier 1 capital for Wells Fargo under regulatory guidelines.