01—Abstract
Summary
Summary of the 8-K filed July 23, 2024. Cited figures are marked; the original filing is the authoritative source.
Wells Fargo & Company/MN (WFC) has filed an 8-K report detailing the creation and issuance of a new series of preferred stock.
Effective July 19, 2024, the company designated 80,000 shares of "6.85% Fixed Rate Reset Non-Cumulative Perpetual Class A Preferred Stock, Series FF" (Series FF Preferred Stock). This series carries a liquidation preference of $25,000a per share.
Further to this, on July 23, 2024, Wells Fargo completed the sale of 2,000,000 Depositary Shares, with each share representing a 1/25th interest in the Series FF Preferred Stock. This action represents a capital raise for the company through the issuance of preferred equity, specifically designed to meet certain regulatory or strategic capital requirements.
02—Key points
Key Highlights
- Designation of 80,000 shares of "6.85% Fixed Rate Reset Non-Cumulative Perpetual Class A Preferred Stock, Series FF."
- The Series FF Preferred Stock has a liquidation preference of $25,000 per share.
- Wells Fargo sold 2,000,000 Depositary Shares on July 23, 2024.
- Each Depositary Share represents a 1/25th interest in a share of the Series FF Preferred Stock.
- The filing includes various exhibits such as the Underwriting Agreement, Certificate of Designation, and Deposit Agreement.
- The issuance of preferred stock is a method for Wells Fargo to raise capital.
03—Questions
Frequently Asked Questions
What is the new preferred stock series called and what is its yield?
The new preferred stock series is named "6.85% Fixed Rate Reset Non-Cumulative Perpetual Class A Preferred Stock, Series FF." The "6.85%" indicates its fixed dividend rate before any potential resets.
What is the liquidation preference of the Series FF Preferred Stock?
The Series FF Preferred Stock has a liquidation preference of $25,000 per share.
How many Depositary Shares were issued and what do they represent?
Wells Fargo sold 2,000,000 Depositary Shares. Each Depositary Share represents a 1/25th interest in one share of the Series FF Preferred Stock.
Why did Wells Fargo issue this preferred stock?
The primary reason for issuing preferred stock is typically to raise capital. This issuance might be to bolster regulatory capital, fund operations, or for other strategic financial initiatives. Specific details regarding the use of proceeds are not provided in this 8-K filing.
04—Continue