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.
Frequently Asked Questions
The filing does not explicitly state the purpose of issuing the Series DD Preferred Stock. However, such issuances are typically undertaken to raise capital, strengthen a company's capital base, or for other strategic financial purposes.
The filing states that 50,000,000 Depositary Shares were sold, with each representing a 1/1,000th interest in a share of Series DD Preferred Stock, which has a liquidation preference of $25,000 per share. To calculate the total capital raised, one would need the price at which these depositary shares were sold to the public, which is not detailed in this 8-K filing but would be found in related prospectus supplements or press releases.
The Series DD Preferred Stock is Non-Cumulative, Perpetual, has a liquidation preference of $25,000 per share, and is authorized with 50,000 shares. The specific voting powers, preferences, and rights are detailed in the Certificate of Designation filed with this report.