01—Abstract
Summary
Summary of the 8-K filed May 14, 2025. Cited figures are marked; the original filing is the authoritative source.
Wells Fargo & Company (NYSE: WFC) filed an 8-K on May 14, 2025 announcing the full redemption of its 5.875%a Fixed-to-Floating Rate Non-Cumulative Perpetual Class A Preferred Stock, Series U, along with the related depositary shares.
The company will redeem all 80,000 outstanding preferred shares and 2,000,000 depositary shares on June 15, 2025, which shifts to June 16, 2025 because of a non-business day. Following the redemption, no Series U preferred stock or depositary shares will remain outstanding. The redemption price is $25,000.00b per preferred share and $1,000.00 per depositary share, which equals $1,000 per depositary share under the 1/25 interest structure.
Redemption prices exclude declared but unpaid dividends, since the redemption date coincides with a regular dividend payment date. Holders of record as of May 30, 2025 will receive the regular quarterly dividend separately on the same June payment date. The company states that all regulatory requirements for the redemption have been satisfied, and Computershare Trust Company, N.A. is serving as redemption agent.
For investors, this is a routine capital management action rather than a signal of operational stress. Retiring the Series U issue reduces the company's outstanding preferred equity and its associated dividend obligations, and the filing does not indicate any change to common equity, earnings guidance, or operations. Holders of the depositary shares should note that the redemption is at par and that the final regular dividend is payable separately.
02—Key points
Key Highlights
- Wells Fargo will fully redeem all 80,000 Series U Preferred Shares (5.875% Fixed-to-Floating Rate Non-Cumulative Perpetual Class A) on June 15, 2025, shifting to June 16, 2025 due to a non-business day.
- The redemption also retires all 2,000,000 related Series U Depositary Shares, each representing a 1/25 interest in a preferred share.
- Redemption price is $25,000.00 per preferred share and $1,000.00 per depositary share, excluding declared and unpaid dividends.
- Regular quarterly dividends will be paid separately on June 15/16, 2025 to holders of record as of May 30, 2025.
- After the redemption, no Series U Preferred Stock or Depositary Shares will remain outstanding.
- All regulatory requirements for the redemption have been satisfied, and Computershare Trust Company, N.A. is the redemption agent.
- The action is a routine capital management step and does not disclose any change to earnings, guidance, or operations.
03—Questions
Frequently Asked Questions
What is being redeemed and when?
Wells Fargo is redeeming all 80,000 outstanding shares of its 5.875% Fixed-to-Floating Rate Non-Cumulative Perpetual Class A Preferred Stock, Series U, along with the 2,000,000 related depositary shares. The redemption date is June 15, 2025, which shifts to June 16, 2025 because June 15 is a non-business day.
How much will holders receive per security?
Holders of the preferred stock will receive $25,000.00 per share, and holders of depositary shares will receive $1,000.00 per depositary share. These amounts do not include declared and unpaid dividends.
Will holders still receive the June dividend?
Yes. The regular quarterly dividend will be paid separately in the customary manner on June 15, 2025 (shifting to June 16, 2025), to holders of record at the close of business on May 30, 2025.
Does this redemption signal financial trouble at Wells Fargo?
The filing does not indicate financial distress. Redeeming outstanding preferred stock is a standard capital management decision, and the filing contains no information about earnings, capital ratios, or operations that would suggest a problem.
Who handles the redemption payments and where should holders direct questions?
Computershare Trust Company, N.A. is the redemption agent, and it will send payment for the depositary shares to holders on the redemption date. Its address is 150 Royall Street, Suite 101, Canton, MA 02021, or PO Box 43014, Providence, RI 02940-3014.
04—Continue