Summary
Wells Fargo & Company/MN (WFC) filed an 8-K report detailing the creation and subsequent sale of a new series of preferred stock. Specifically, on July 23, 2021, the company filed a Certificate of Designation for "Non-Cumulative Perpetual Class A Preferred Stock, Series DD." This series is authorized with 50,000 shares, each having a liquidation preference of $25,000 per share. Further reinforcing this, on July 27, 2021, Wells Fargo announced the sale of 50,000,000 Depositary Shares. Each Depositary Share represents a 1/1,000th interest in a share of the Series DD Preferred Stock. This action indicates a capital-raising event for the company, likely to strengthen its balance sheet or fund strategic initiatives.
Key Highlights
- 1Wells Fargo created a new class of preferred stock: Non-Cumulative Perpetual Class A Preferred Stock, Series DD.
- 2The Series DD Preferred Stock has a liquidation preference of $25,000 per share.
- 350,000,000 Depositary Shares were sold, each representing a 1/1,000th interest in a share of Series DD Preferred Stock.
- 4The sale of Depositary Shares occurred on July 27, 2021.
- 5The filing includes various exhibits related to the issuance, such as the Certificate of Designation, Deposit Agreement, and Underwriting Agreement.