Summary
Wells Fargo & Company (WFC) announced on May 1, 2012, its intention to redeem two trust preferred securities on June 15, 2012. This action involves the redemption of $800 million in 6.375% Trust Preferred Securities from Wachovia Capital Trust IX and $1 billion in 6.25% Enhanced Trust Preferred Securities from Wells Fargo Capital XI. The primary driver for this redemption is to align with Wells Fargo's capital plan submitted to the Federal Reserve Board. Importantly, these redeemed securities will no longer qualify as Tier 1 capital for the Company under applicable regulatory guidelines upon notice of redemption. The redemptions are planned to be funded by existing excess cash available to the company.
Key Highlights
- 1Wells Fargo is redeeming $800 million of Wachovia Capital Trust IX 6.375% Trust Preferred Securities.
- 2Wells Fargo is redeeming $1 billion of Wells Fargo Capital XI 6.25% Enhanced Trust Preferred Securities.
- 3The redemption date for both securities is scheduled for June 15, 2012.
- 4The redemption is part of Wells Fargo's capital plan submitted to the Federal Reserve Board.
- 5Upon redemption, these securities will no longer count towards Wells Fargo's Tier 1 capital.
- 6The redemptions will be funded using the company's available excess cash.