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Wachovia Capital Trust X, 7.85% Trust Preferred Securities
Ticker Symbol: WB-D* CUSIP: 92979K208 Exchange: NYSE
* NOTE: This security is no longer trading as of 10/03/2011
Security has been Called for: Monday, October 3, 2011
September 2, 2011 -- WB-D has been called for redemption on 10/3/2011 at $25 per share plus accrued dividends per a NYSE bulletin dated 9/2/2011. “This action constitutes a redemption as a result of a ‘Capital Treatment Event’ under the securities’ governing instruments,” San Francisco-based Wells Fargo said. “The company has determined that a capital treatment event occurred with the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act.” Banks are seeking to slash interest costs by repaying TruPS, which typically pay higher rates than other securities. Last year’s Dodd-Frank financial overhaul prevents banks from counting the securities as regulatory capital starting in 2013. Hybrids, including TruPS, blend characteristics of debt and equity. ____________ This security is possibly subject to an early call as a result of the occurrence of a capital treatment event (see prospectus for further information) stemming from the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act which no longer allows the company to include the funds originating from this security as Tier 1 capital on their balance sheet.
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QUANTUMONLINE.COM SECURITY DESCRIPTION: Wachovia Capital Trust IX, 7.85% Trust Preferred Securities, liquidation amount $25 per share, guaranteed by Wachovia Corp. (NYSE: WB) (See our definition of Guaranteed in our Glossary of Income Investing Terms for the technicalities of the guarantee), redeemable at the issuer's option on or after 12/15/2012 at $25 per share plus accrued and unpaid dividends, and maturing 12/15/2047 which may be extended to 12/1/2087. Distributions of 7.85% ($1.9625) per annum are paid quarterly on 3/15, 6/15, 9/15 & 12/15 to holders of record on the last day of the month prior to the payment date. Dividends paid by trust preferred securities are derived from interest paid to the underlying debt securities and therefore are NOT eligible for the 15% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. The company has the right, at any time, to defer dividend payments for up to five consecutive years before the alternative payment mechanism of selling common shares to pay dividends takes effect and up to ten consecutive years without giving rise to an event of default (but not beyond the maturity date). The trust's assets consist of the 7.85% Extendible Long Term Subordinated Notes (LoTS) due 6/15/2047, which may be extended to 6/1/2087, which were purchased from the company using the funds generated from the sale of the trust preferred securities. In regard to the payment of dividends and upon liquidation, the LoTS rank junior to the company's senior debt and senior to the common shares of the company. See the IPO prospectus for further information on the trust preferred securities by clicking on the ‘Link to IPO Prospectus’ provided below. Wells Fargo & Company (NYSE: WFC) completed its merger with Wachovia Corporation, effective December 31, 2008.
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Go to Parent Company's Record (WFC)
IPO - 11/15/2007 - 30.00 Million Shares @ $25.00/share.
Link to IPO Prospectus
Previous Ticker Symbol: WCVAP Changed: 12/03/2007
Market Value $750.0 Million
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Company's Online Information Links
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| Company's Online SEC EDGAR Filings |
| Company's Email Address Links |
| Address and Phone Numbers |
| Address: One Wachovia Center, 301 South College Street, Suite 4000, Charlotte, NC 28288 |
| Main Phone Number |
704-374-6565 |
| Fax Number |
704-374-3425 |
| Investor Relations
Alice Lehman
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704-374-4139
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| Toll Free Phone Number |
800-922-4684 |
| CEO - Robert K. Steel |
CFO - Thomas J. Wurtz |
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