Summary
Wells Fargo & Company (WFC) filed an 8-K report detailing the creation and sale of a new series of preferred stock. Effective July 20, 2023, the company filed a Certificate of Designation for its "7.625% Fixed Rate Reset Non-Cumulative Perpetual Class A Preferred Stock, Series EE" (Series EE Preferred Stock). This series is authorized with 69,000 shares, a liquidation preference of $25,000 per share, and specific voting rights and preferences. Further to this designation, on July 24, 2023, Wells Fargo sold 1,725,000 Depositary Shares. Each Depositary Share represents a 1/25th interest in a share of the Series EE Preferred Stock. This action is part of the company's ongoing capital management and funding strategies. Investors should note that this is a non-cumulative perpetual preferred stock, meaning dividends are not guaranteed to be paid if the company does not declare them, and they do not accrue if missed.
Key Highlights
- 1Wells Fargo established a new series of preferred stock: 7.625% Fixed Rate Reset Non-Cumulative Perpetual Class A Preferred Stock, Series EE.
- 2The Series EE Preferred Stock has a liquidation preference of $25,000 per share and 69,000 authorized shares.
- 3On July 24, 2023, the company sold 1,725,000 Depositary Shares, each representing a 1/25th interest in the Series EE Preferred Stock.
- 4This offering is linked to a prior Registration Statement on Form S-3 (File No. 333-269514).
- 5Key documents filed include the Underwriting Agreement, Certificate of Designation, Deposit Agreement, and related legal opinions.
- 6The preferred stock is non-cumulative, meaning missed dividend payments are not carried forward.
- 7The stock is perpetual, indicating no fixed maturity date.