Wells Fargo & Co to Sell New Preferred

Giant banker Wells Fargo & Co (WFC) will be selling a new issue of non-cumulative preferred stock. This will have a permanent ticker of WFC-Z when it hits the permanent exchange. The OTC Grey market ticker is not out yet.

The issue will no doubt be a large issue as giant banks sell giant preferred issues.

The company currently has 9 issues outstanding, with 3 currently callable and 1 becomes callable in September all of which can be seen here.

The issue will be non-cumulative, but qualified and will be investment grade.

The preliminary prospectus can be read here.

mcg had this very early with a estimated pricing around 4.875%. If you Prefer weighted in shortly after with the same price talk.

10 thoughts on “Wells Fargo & Co to Sell New Preferred”

  1. Coupon in line with Metlife’s.

    WFC-L significantly higher current yield looks better if this new one proves itself as worthy of par or above. WFC-P not going to get called anytime soon either and an attractive yield in comparison.

  2. I just bought some of WFC-T yesterday when it fell a bit and I was thinking it was silly for it to fall when parent WFC fell due to their earnings being poor!

    I guess if this new one is 4.75-4.85% yielder, they may use proceeds to buy back the 6% coupon WFC-PRT and this new preferreds being known to insiders is the reason people sold their WFC-T!

  3. Waiting for preferreds, and the markets in general, to come back to earth, which always happens, sooner or later. Patience has rewarded me in the past with issues I’ve bought well under par value. Of course, I know those now run the risk of being called. Oh, well, in that eventuality I will have at least collected some nice dividends as well as capital gains.

    1. But Ron, don’t you realize? It’s different this time….. Preferreds and the market in general are never going to come down to earth again ever. The market has spoken…….. Don’t you know there are no risks involved in owning anything anymore? What’s wrong with you? or me…. lol

    2. Most investment grade banks and companies are issuing new money preferreds in the 5% (and less) range and calling eligible preferreds. Looking to the future, unless a company has an unanticipated need for cash, we may be stuck in a world of 4.75 to 5% preferreds for a very long time, as these companies will choose not to call the low cost issues. Flipping and dividend capture may become a new way of life as opposed to an occasional opportunity to make a few dollars. The world has changed.

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