Wells Fargo & Company (NYSE:WFC) announced today the pricing terms of
its previously announced private offers to exchange (i) any and all
outstanding subordinated notes of Wells Fargo & Company listed in the
table below (the “Parent Notes”) for new Subordinated Notes due January
16, 2024, of Wells Fargo & Company (the “2024 Notes”), and (ii) any and
all subordinated notes of Wells Fargo Bank, N.A. listed in the table
below (together with the Parent Notes, the “Old Notes”) for new
Subordinated Notes due January 15, 2044 of Wells Fargo & Company (the
“2044 Notes” and, together with the 2024 Notes, the “New Notes”) and
cash, if any. The pricing terms were determined as of the price
determination date, which was 11:00 a.m., New York City time, on
November 21, 2013, in accordance with the terms set out in the
confidential offering circular for the exchange offers, dated November
6, 2013, and the related letter of transmittal.
The interest rate on the new 2024 Notes will be 4.480%, determined by
reference to the bid-side yield on the 2.500% U.S. Treasury due August
15, 2023, as of the price determination date, which was 2.780%. The
interest rate on the new 2044 Notes will be 5.606%, determined by
reference to the bid-side yield on the 3.625% U.S. Treasury due August
15, 2043, as of the price determination date, which was 3.906%.
The total exchange price to be received in each exchange offer for each
$1,000 principal amount of the relevant series of Old Notes validly
tendered, and not validly withdrawn, at or prior to the early
participation date (5:00 p.m., New York City time, on November 20,
2013), is set forth in the table below. Each total exchange price
includes the early exchange premium of $30.00 principal amount of the
applicable series of New Notes per $1,000 principal amount of Old Notes
validly tendered, and not validly withdrawn, at or prior to the early
participation date. The total exchange price for each exchange offer has
been determined in accordance with the procedures set forth in the
confidential offering circular. Holders of Old Notes that validly tender
Old Notes after the early participation date and whose Old Notes are
accepted in the applicable exchange offer will receive the exchange
price, which is the total exchange price less the early exchange premium.
The table below shows, among other things, the total exchange price and
exchange price per $1,000 principal amount of each series of Old Notes
accepted in the exchange offers:
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Composition of Total Exchange Price
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CUSIP/ISIN Number
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Old Notes
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Issuer
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Principal Amount Outstanding
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Reference U.S. Treasury Security
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Reference UST Yield
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Fixed Spread (basis points)
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New Note Series
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Exchange Offer Yield
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Exchange Price
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Total Exchange Price
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Cash Payment
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Principal Amount of New Notes
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929903AE2/
US929903AE28
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4.875% Subordinated Notes due February 15, 2014
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Wells Fargo & Company
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$900,000,000
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1.25% Note due February 15, 2014
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0.099%
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+0
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2024 Notes
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0.099%
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$980.48
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$1,010.48
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$0.00
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$1,010.48
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949746FS5/
US949746FS59
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4.625% Subordinated Notes due April 15, 2014
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Wells Fargo & Company
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$500,000,000
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1.25% Note due April 15, 2014
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0.114%
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+0
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2024 Notes
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0.114%
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$987.41
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$1,017.41
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$0.00
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$1,017.41
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844730AG6/
US844730AG67
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5.800% Subordinated Notes due June 15, 2014
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Wells Fargo & Company
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$400,000,000
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0.750% Note due June 15, 2014
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0.125%
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+0
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2024 Notes
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0.125%
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$1,001.35
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$1,031.35
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$0.00
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$1,031.35
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929903AJ1/
US929903AJ15
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5.250% Subordinated Notes due August 1, 2014
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Wells Fargo & Company
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$1,500,000,000
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0.125% Note due July 31, 2014
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0.136%
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+5
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2024 Notes
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0.186%
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$1,004.42
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$1,034.42
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$0.00
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$1,034.42
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949746CR0/
US949746CR04
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5.000% Subordinated Notes due November 15, 2014
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Wells Fargo & Company
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$850,000,000
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0.375% Note due November 15, 2014
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0.148%
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+10
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2024 Notes
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0.248%
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$1,015.98
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$1,045.98
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$0.00
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$1,045.98
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949746JE2/
US949746JE28
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5.125% Subordinated Notes due September 15, 2016
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Wells Fargo & Company
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$850,000,000
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0.625% Note due October 15, 2016
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0.527%
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+40
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2024 Notes
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0.927%
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$1,085.87
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$1,115.87
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$0.00
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$1,115.87
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929903CH3/
US929903CH31
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5.625% Subordinated Notes due October 15, 2016
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Wells Fargo & Company
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$1,250,000,000
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0.625% Note due October 15, 2016
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0.527%
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+40
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2024 Notes
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0.927%
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$1,103.48
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$1,133.48
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$0.00
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$1,133.48
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33738MAA9/
US33738MAA99
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6.180% Subordinated Notes due February 15, 2036
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Wells Fargo Bank, N. A.
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$149,700,000
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3.625% Bond due August 15, 2043
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3.906%
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+100
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2044 Notes
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4.906%
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$1,141.13
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$1,171.13
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$0.00
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$1,171.13
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33738KAA3/
US33738KAA34
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6.180% Subordinated Notes due February 15, 2036
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Wells Fargo Bank, N. A.
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$150,000,000
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3.625% Bond due August 15, 2043
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3.906%
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+100
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2044 Notes
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4.906%
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$1,141.13
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$1,171.13
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$0.00
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$1,171.13
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94980VAG3/
US94980VAG32
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5.950% Subordinated Notes due August 26, 2036
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Wells Fargo Bank, N. A.
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$1,000,000,000
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3.625% Bond due August 15, 2043
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3.906%
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+100
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2044 Notes
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4.906%
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$1,112.06
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$1,142.06
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$0.00
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$1,142.06
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33738MAG6/
US33738MAG69
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6.919% Subordinated Notes due December 15, 2036
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Wells Fargo Bank, N. A.
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$50,000,000
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3.625% Bond due August 15, 2043
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3.906%
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+100
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2044 Notes
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4.906%
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$1,246.04
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$1,276.04
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$0.00
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$1,276.04
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92976GAG6/
US92976GAG64
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5.850% Subordinated Notes due February 1, 2037
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Wells Fargo Bank, N. A.
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$1,500,000,000
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3.625% Bond due August 15, 2043
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3.906%
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+100
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2044 Notes
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4.906%
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$1,099.77
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$1,129.77
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$100.00
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$1,029.77
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92976GAJ0/
US92976GAJ04
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6.600% Subordinated Notes due January 15, 2038
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Wells Fargo Bank, N. A.
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$2,500,000,000
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3.625% Bond due August 15, 2043
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3.906%
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+100
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2044 Notes
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4.906%
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$1,208.03
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$1,238.03
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$100.00
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$1,138.03
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In addition to the applicable total exchange price or exchange price,
holders whose Old Notes are accepted for exchange will be paid accrued
and unpaid interest on such Old Notes to, but not including, the
applicable settlement date. In the case of Old Notes exchanged on the
final settlement date, this amount will be reduced to reflect embedded
interest on the New Notes as described in the confidential offering
circular.
The exchange offers will expire on the expiration date (11:59 p.m., New
York City time, on December 5, 2013) unless extended by Wells Fargo &
Company.
In accordance with the terms of the exchange offers, tendered Old Notes
may no longer be withdrawn, except in certain limited circumstances
where additional withdrawal rights are required by law. The early
settlement date is expected to be November 26, 2013, and will apply to
all Old Notes validly tendered and accepted for exchange pursuant to the
terms and conditions of the applicable exchange offer as of the early
participation date. The final settlement date is expected to be December
6, 2013, and will apply to all Old Notes validly tendered and accepted
for exchange pursuant to the terms and conditions of the applicable
exchange offer after the early participation date but at or prior to the
expiration date.
Each exchange offer is being conducted by Wells Fargo & Company upon the
terms and subject to the conditions set forth in the confidential
offering circular and the related letter of transmittal. The exchange
offers are only extended, and copies of the offering documents will only
be made available, to holders of outstanding notes that have certified
their status as (1) a “Qualified Institutional Buyer” as defined in Rule
144A under the Securities Act of 1933, as amended (the “Securities Act”)
or (2)(A) a person other than a “U.S. person” as defined in Rule 902
under Regulation S of the Securities Act and (B) if resident and/or
located in any Member State of the European Economic Area that has
implemented provisions of the Directive 2003/71/EC (as amended,
including pursuant to Directive 2010/73/EU, the “Prospectus Directive”),
a qualified investor as defined in Article 2.1(e) of the Prospectus
Directive (each, an “Eligible Holder”).
If and when issued, the New Notes will not be registered under the
Securities Act or any state securities laws. Therefore, the New Notes
may not be offered or sold in the United States absent registration or
an applicable exemption from the registration requirements of the
Securities Act and any applicable state securities laws. Wells Fargo &
Company will enter into a registration rights agreement with respect to
each series of New Notes.
Documents relating to the exchange offers have been, and will be,
distributed only to holders of the outstanding Old Notes that have
completed and returned, or that complete and return, a letter of
eligibility confirming that they are Eligible Holders. Holders of the
outstanding Old Notes that desire to review the eligibility letter may
visit the website for this purpose at http://www.dfking.com/wfc
or contact D.F. King & Co., Inc., the information agent for the exchange
offers, by calling toll-free (800) 549-6697 or at (212) 269-5550 (banks
and brokerage firms).
This press release is not an offer to sell or a solicitation of an
offer to buy any security. The exchange offers are being made solely by
the confidential offering circular and related letter of transmittal and
only to such persons and in such jurisdictions as is permitted under
applicable law.
In particular, this communication is only addressed to and directed
at: (A) in any Member State of the European Economic Area that has
implemented the Prospectus Directive, qualified investors in that Member
State within the meaning of the Prospectus Directive and (B) (i)
persons that are outside the United Kingdom or (ii) persons in the
United Kingdom who are investment professionals falling within Article
19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005 (the “Order”) or fall within Article 43 of the
Order, or any other person to whom it may otherwise lawfully be
communicated under the Order (all such persons together being referred
to as “relevant persons”). The New Notes are only available to,
and any invitation, offer or agreement to subscribe, purchase or
otherwise acquire such New Notes will be engaged in only with, relevant
persons. Any person who is not a relevant person should not act
or rely on this document or any of its contents.
This press release contains forward-looking statements, which are
subject to risks and uncertainties. The forward-looking statements
contain words such as “believe,” “expect,” “anticipate,” “intend,”
“plan,” “will,” “may,” “likely” and similar expressions. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date on which they are made and
are not based on historical facts but instead represent Wells Fargo &
Company’s then current expectations regarding future events,
circumstances or results. Wells Fargo & Company undertakes no obligation
to update or revise any forward-looking statements. Factors that could
cause actual results to differ materially from these forward-looking
statements include, but are not limited to, whether or not Wells Fargo &
Company will ultimately consummate the exchange offers, the satisfaction
of the conditions described in the confidential offering circular and
market conditions.
Copyright Business Wire 2013