01—Abstract
Summary
Summary of the 8-K filed February 6, 2024. Cited figures are marked; the original filing is the authoritative source.
Wells Fargo & Company (NYSE: WFC) announced on February 6, 2024 that it will fully redeem all 33,600 outstanding shares of its 6.625%a Fixed-to-Floating Rate Non-Cumulative Perpetual Class A Preferred Stock, Series R, along with the related 33,600,000 depositary shares (NYSE: WFC.PRR), on March 15, 2024.
The redemption price is $25,000.00b per preferred share and $25.00 per depositary share, plus any declared and unpaid dividends, which are excluded from the stated price because the redemption date coincides with a regular dividend payment date. After the redemption, no Series R preferred or depositary shares will remain outstanding. For investors, this is a capital-structure housekeeping event rather than a change in operating performance.
Retiring the Series R issue removes a fixed-rate preferred obligation from the balance sheet and reduces the company's preferred dividend burden going forward. Because the filing states that all regulatory requirements have been satisfied, the redemption is expected to proceed as scheduled. Holders of record as of February 29, 2024 will receive the regular quarterly dividend, and redemption payments will be made through the redemption agent, Equiniti Trust Company, LLC.
The filing does not disclose the replacement funding source, any effect on regulatory capital ratios, or the impact on earnings per share. Investors seeking those details would need to review the company's subsequent filings or earnings materials.
02—Key points
Key Highlights
- Wells Fargo will redeem all 33,600 outstanding shares of its 6.625% Series R Non-Cumulative Perpetual Preferred Stock on March 15, 2024.
- All 33,600,000 related depositary shares (NYSE: WFC.PRR), each representing a 1/1,000 interest in a preferred share, will also be redeemed.
- Redemption price is $25,000.00 per preferred share and $25.00 per depositary share, excluding declared and unpaid dividends.
- The redemption date is also a regular dividend payment date; holders of record on February 29, 2024 will receive the quarterly dividend separately.
- After the redemption, no Series R preferred or depositary shares will remain outstanding.
- The company states that all regulatory requirements for the redemption have been satisfied.
- The filing is a capital-structure action and does not report any change in operating results or financial guidance.
03—Questions
Frequently Asked Questions
What is being redeemed and when?
Wells Fargo will redeem all 33,600 outstanding shares of its 6.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Class A Preferred Stock, Series R, and all related depositary shares, on March 15, 2024.
How much will holders receive?
Holders of Series R preferred shares will receive $25,000.00 per share, and holders of depositary shares will receive $25.00 per depositary share. These amounts exclude declared and unpaid dividends, which are paid separately.
Will holders still receive the quarterly dividend?
Yes. Because March 15, 2024 is also a dividend payment date, the regular quarterly dividend will be paid in the customary manner to holders of record at the close of business on February 29, 2024.
Does this redemption affect Wells Fargo's operations or earnings outlook?
The filing does not discuss operating or earnings effects. It is a capital-structure action that retires a fixed-rate preferred issue, which lowers future preferred dividend obligations. The filing does not disclose the funding source or regulatory capital impact.
Who handles payment to holders?
Equiniti Trust Company, LLC is the redemption agent. It will send payment for the depositary shares to holders on the redemption date.
04—Continue