Summary
Wells Fargo & Company (WFC) filed an 8-K on January 22, 2021, to report an amendment to its corporate documents. Specifically, the company filed a Certificate of Designation with the Delaware Secretary of State, effective upon filing, to designate a new series of preferred stock. This filing pertains to the creation of the "3.90% Fixed Rate Reset Non-Cumulative Perpetual Class A Preferred Stock, Series BB." This new series of preferred stock will have 140,400 authorized shares, a liquidation preference of $25,000 per share, and carries a fixed rate reset non-cumulative perpetual designation. The filing outlines the specific rights, preferences, and restrictions associated with this Series BB Preferred Stock, as permitted by the company's Restated Certificate of Incorporation. Investors should note this is a designation of a new preferred stock class, not an issuance or sale at this time.
Key Highlights
- 1Wells Fargo designated a new series of preferred stock: "3.90% Fixed Rate Reset Non-Cumulative Perpetual Class A Preferred Stock, Series BB."
- 2The Certificate of Designation was filed with the Delaware Secretary of State on January 22, 2021.
- 3A total of 140,400 shares of Series BB Preferred Stock are authorized.
- 4Each share of Series BB Preferred Stock has a liquidation preference of $25,000.
- 5The preferred stock is non-cumulative, meaning missed dividend payments are not made up later.
- 6The preferred stock is perpetual, indicating no maturity date.
- 7The filing details the specific rights, preferences, and restrictions of this new preferred stock series.