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Wells Fargo Capital XIV, 8.625% Enhanced TRUPS Trust Preferred Securities
Ticker Symbol: WCO* CUSIP: 949829204 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 -- WCO 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: Wells Fargo Capital XIV, 8.625% Enhanced TRUPS Trust Preferred Securities, liquidation amount $25 per share, guaranteed by Well Fargo & Co. (NYSE: WFC) (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 9/15/2013 at $25 per share plus accrued and unpaid dividends, and maturing 9/14/2068. Distributions of 8.625% ($2.15625) per annum are paid quarterly on 3/15, 6/15, 9/15 & 12/15 to holders of record on the record date which is one business day prior to the payment date while the securities remain in book-entry form (NOTE: the ex-dividend date is at least 2 business days prior to the record 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 40 consecutive quarters without giving rise to an event of default (but not beyond the maturity date) and up to 20 consecutive quarters before the alternative payment mechanism takes effect. The trust's assets consist of the 8.625% Junior Subordinated Deferrable Interest Debentures due 9/14/2068 which were purchased from the company using the funds generated from the sale of the trust preferred securities. See the IPO prospectus for further information on the trust preferred securities by clicking on the ‘Link to IPO Prospectus’ provided below.
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Go to Parent Company's Record (WFC)
IPO - 8/14/2008 - 24.00 Million Shares @ $25.00/share.
Link to IPO Prospectus
Previous Ticker Symbol: WLFGP Changed: 8/22/2008
Market Value $600.0 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: 420 Montgomery Street, San Francisco, CA 94163 |
| Main Phone Number |
866-249-3302 |
| Fax Number |
Not Available |
| Investor Relations
Jim Rowe
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415-396-8216
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| Toll Free Phone Number |
888-662-7865 |
| CEO - John G. Stumpf |
CFO - Timothy J. Sloan |
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