Summary
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 $25,000 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.
Key Highlights
- 1Designation of 80,000 shares of "6.85% Fixed Rate Reset Non-Cumulative Perpetual Class A Preferred Stock, Series FF."
- 2The Series FF Preferred Stock has a liquidation preference of $25,000 per share.
- 3Wells Fargo sold 2,000,000 Depositary Shares on July 23, 2024.
- 4Each Depositary Share represents a 1/25th interest in a share of the Series FF Preferred Stock.
- 5The filing includes various exhibits such as the Underwriting Agreement, Certificate of Designation, and Deposit Agreement.
- 6The issuance of preferred stock is a method for Wells Fargo to raise capital.