Summary
Wells Fargo & Company (WFC) announced the upcoming liquidation of two trust entities: Central Fidelity Capital Trust I and Wachovia Capital Trust II. This action is scheduled to occur on June 21, 2021. The liquidation involves the cancellation of various trust securities, including Capital Securities and Common Securities. These securities will be exchanged for corresponding Debentures issued by Wells Fargo & Company, as successor to Central Fidelity Banks, Inc. and Wachovia Corporation, respectively. This event represents a restructuring of certain past securitization structures. For investors holding the Capital Securities, the exchange will be on a par basis ($1,000 of Capital Securities for $1,000 principal amount of Debentures). Any Debentures that would otherwise be distributed to Wells Fargo & Company as the holder of Common Securities will be extinguished, which could simplify the company's capital structure and reduce future obligations related to these specific trusts.
Key Highlights
- 1Wells Fargo is liquidating Central Fidelity Capital Trust I and Wachovia Capital Trust II on June 21, 2021.
- 2This action involves the cancellation of Capital Securities and Common Securities issued by these trusts.
- 3Holders of Capital Securities will receive an equal principal amount of Wells Fargo Debentures in exchange.
- 4Wells Fargo, as the holder of Common Securities, will have its distributed principal amount of Debentures extinguished.
- 5The company is acting as successor to Central Fidelity Banks, Inc. and Wachovia Corporation for the issued Debentures.
- 6This event is part of a broader effort to manage and potentially simplify the company's outstanding debt and capital structure.
- 7A press release detailing these events is filed as Exhibit 99.1 to the 8-K.