Giant Banker Wells Fargo & Company (WFC) has announced they will be selling a new $25 preferred stock issue.
Nothing unusual about this issue–it will be non-cumulative, qualified and optionally redeemable in 2025.
The banker includes ‘redemption of preferred shares’ in their ‘use of proceeds’ section of the prospectus. The company has 3-4 issues that are currently (or soon will be) redeemable at coupons ranging from 5.125% to 6.0%. With ‘yield talk’ in the 4.75% area it is highly likely the 6.0% WFC-T issue will be redeemed and potentially the 6% WRC-V issue which becomes redeemable on 12/15/2020 will be called–note that all WFC issues can only be redeeemed on a dividend payment date of which the next is 12/15/2020.
The permanent ticker will be WFC-A when it hits the NYSE and will trade on the OTC grey market prior to the permanent exchange, but the OTC grey market ticker has not yet been announced.
Eugene was right on this one.