Wells Fargo & Company announced that it will redeem all of its Floating‑Rate Junior Subordinated Deferrable Interest Debentures due January 15, 2027. The redemption will be executed on January 15, 2026, at a price equal to 100 % of the principal amount plus accrued and unpaid interest up to, but excluding, the prepayment date.
The total principal amount of the debentures being redeemed is $1.2 billion, and the estimated cost of the redemption, including accrued interest, is approximately $1.25 billion. The 100 % redemption price ensures that holders receive the full face value of the debt, while the accrued interest component reflects the time value of the debt up to the prepayment date.
By redeeming these debentures, Wells Fargo removes a covenant that previously restricted its ability to repurchase or redeem its 3.90 % Fixed‑Rate Reset Non‑Cumulative Perpetual Class A Preferred Stock, Series BB. The covenant removal frees the bank to manage its preferred equity more flexibly, allowing it to consider share buybacks, preferred stock redemptions, or other capital deployment strategies without regulatory constraints.
The redemption aligns with Wells Fargo’s post‑asset‑cap growth strategy. After the Federal Reserve lifted the $1.95 trillion asset cap in June 2025, the bank has been optimizing its balance sheet to support asset growth and strategic initiatives. Reducing debt obligations improves leverage ratios and strengthens the bank’s credit profile, positioning it to invest in technology, expand its retail footprint, and potentially increase shareholder returns through dividends or buybacks.
Management emphasized that the move reflects a disciplined approach to capital management and a commitment to maintaining a robust capital base in a post‑cap environment. The decision underscores the bank’s focus on long‑term value creation while preserving flexibility to respond to market opportunities.
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