Summary
Wells Fargo & Company (WFC) filed an 8-K on January 2, 2013, to announce the redemption of specific trust preferred securities. The company is redeeming $500 million of 5.85% Trust Preferred Securities (TRUPS®) from Wells Fargo Capital VII, $200 million of 5.625% Trust Preferred Securities from Wells Fargo Capital VIII, and $500 million of 5.625% Trust Originated Preferred Securities (TOPrS™) from Wells Fargo Capital IX. The redemption date for all these securities is February 4, 2013. The redemption price for each security will be 100% of its principal amount plus accumulated and unpaid distributions. This action is part of Wells Fargo's capital plan submitted to the Federal Reserve Board and aligns with its previously announced capital actions from March 2012. The redemption will be funded by excess cash on hand. Importantly, upon notice of redemption, these securities will no longer qualify as Tier 1 capital for Wells Fargo under applicable regulatory guidelines.
Key Highlights
- 1Wells Fargo announced the redemption of approximately $1.2 billion in trust preferred securities.
- 2The redemption impacts securities issued by Wells Fargo Capital VII, VIII, and IX.
- 3All affected securities will be redeemed on February 4, 2013.
- 4The redemption price is 100% of the principal amount plus accrued distributions.
- 5The redemption is funded by existing excess cash.
- 6This action is consistent with Wells Fargo's capital plan submitted to the Federal Reserve.
- 7Upon redemption, these securities will no longer count towards the company's Tier 1 capital.