Summary
Wells Fargo & Company (WFC) has announced a series of redemptions for various series of its preferred stock and related trust securities. The company will redeem all outstanding shares of its Non-Cumulative Perpetual Class A Preferred Stock, Series P and Series W, along with their associated depositary shares, on March 15, 2021. Additionally, a partial redemption of its Non-Cumulative Perpetual Class A Preferred Stock, Series N, will occur on the same date, leaving a smaller principal amount outstanding. These actions reflect the company's ongoing capital management strategies and its commitment to optimizing its capital structure.
Key Highlights
- 1Wells Fargo will redeem all Series P Preferred Stock and Series P Depositary Shares on March 15, 2021.
- 2Wells Fargo will redeem all Series W Preferred Stock and Series W Depositary Shares on March 15, 2021.
- 3Wells Fargo will partially redeem Series N Preferred Stock and Series N Depositary Shares on March 15, 2021, with 14,000 shares of Series N Preferred Stock remaining outstanding.
- 4Wachovia Capital Trust III will redeem all its 5.80% Fixed-to-Floating Rate Normal Wachovia Income Trust Securities (Normal WITS) on March 15, 2021.
- 5The redemption of Normal WITS is linked to Wells Fargo's redemption of its Class A Preferred Stock, Series I, held by the trust's property trustee.
- 6Following these redemptions, the Guarantee by Wells Fargo on the Normal WITS will terminate.
- 7These redemptions are a significant event for the holders of these specific preferred stock and trust securities.
Frequently Asked Questions
Wells Fargo is redeeming all outstanding shares of its Non-Cumulative Perpetual Class A Preferred Stock, Series P and Series W, along with their associated depositary shares. It is also partially redeeming its Non-Cumulative Perpetual Class A Preferred Stock, Series N, and related depositary shares.
No, only a portion of the Series N Preferred Stock and its associated depositary shares will be redeemed. After the redemption, 14,000 shares of Series N Preferred Stock will remain outstanding.
The 'Normal WITS' refer to Wachovia Capital Trust III's 5.80% Fixed-to-Floating Rate Normal Wachovia Income Trust Securities. These securities, which are guaranteed by Wells Fargo & Company, are being fully redeemed on March 15, 2021.
The redemption of the Normal WITS is a mandatory consequence of Wells Fargo's redemption of its Class A Preferred Stock, Series I, which is held by the property trustee of Wachovia Capital Trust III.