Wells Fargo & Company Announces Full Redemption of its Series I Preferred Stock and the 5.80% Fixed-to-Floating Rate Normal Wachovia Income Trust Securities of Wachovia Capital Trust III

Rhea-AI Summary

Wells Fargo (NYSE: WFC) announced the redemption of 2.5 million of its 5.80% Fixed-to-Floating Rate Normal Wachovia Income Trust Securities on March 15, 2021. This action follows the redemption of its Class A Preferred Stock, Series I. Each Normal WITS will be redeemed at $1,000, with distribution payments occurring separately for record holders as of February 28, 2021. All regulatory requirements for this redemption have been met, and payments will be processed by U.S. Bank National Association on the redemption date.

Positive

• Successful completion of regulatory requirements for the redemption.
• Redemption of $2.5 billion Normal WITS indicates a financial restructuring.

Negative

• None.

Wells Fargo & Company (NYSE: WFC) today announced that on March 15, 2021, Wachovia Capital Trust III (the “Trust”) will redeem all 2,500,000 of its 5.80% Fixed-to-Floating Rate Normal Wachovia Income Trust Securities, fully and unconditionally guaranteed (the “Guarantee”) by Wells Fargo & Company (the “Normal WITS”) (NYSE: WFC /TP). The Normal WITS are mandatorily redeemable on such date as a result of the redemption by Wells Fargo & Company of its Class A Preferred Stock, Series I (the “Series I Preferred Shares”), held by U.S. Bank National Association as Property Trustee of the Trust. The redemption price will be equal to $1,000.00 per Normal WITS. After giving effect to the redemptions, no Normal WITS or Series I Preferred Shares will remain outstanding. The Guarantee will also terminate upon redemption of the Normal WITS.

Financial documents (Photo: Wells Fargo)

Because the redemption date is also a distribution date for the Normal WITS, the redemption price does not include the distribution payable on such date. This distribution will be paid separately in the customary manner on March 15, 2021, to the holders of record on Feb. 28, 2021.

All regulatory requirements relating to the redemption of the Series I Preferred Shares and the Normal WITS have been satisfied by Wells Fargo & Company. Payment of the redemption price for the Normal WITS will be sent to holders by U.S. Bank National Association, as Property Trustee of the Trust, on the redemption date.

About Wells Fargo

Wells Fargo & Company is a leading financial services company that has approximately $1.9 trillion in assets and proudly serves one in three U.S. households and more than 10% of all middle market companies in the U.S. We provide a diversified set of banking, investment, and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking and Wealth, and Investment Management. Wells Fargo ranked No. 30 on Fortune’s 2020 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy.

News Release Category: WF-CF

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FAQ

When will Wells Fargo redeem its Normal WITS?

Wells Fargo will redeem its Normal WITS on March 15, 2021.

What is the redemption price for the Normal WITS from Wells Fargo?

The redemption price for the Normal WITS will be $1,000 each.

Why is Wells Fargo redeeming the Normal WITS?

The redemption is part of a broader financial restructuring following the redemption of its Series I Preferred Shares.

Who will process the redemption payments for Wells Fargo's Normal WITS?

U.S. Bank National Association will process the redemption payments.

What happens to the Guarantee after the Normal WITS are redeemed?

The Guarantee will terminate upon the redemption of the Normal WITS.