Wells Fargo Completes Delayed Bond Sale
October 19 2016 - 4:40PM
Dow Jones News
Wells Fargo & Co. on Wednesday sold $3.5 billion of bonds a
day later than anticipated but within the expected price range,
according to a regulatory filing.
The San Francisco-based bank delayed the bond sale Tuesday after
S&P Global Ratings revised the outlook on its single-A credit
rating to negative from stable, citing the hit to its reputation
from the recent disclosure that employees had created as many as
two million accounts without customers' knowledge.
The delay proved to be a small hiccup for the bank, which priced
the $3.5 billion 10-year bonds with a 3.027% yield, or 1.3
percentage points above the comparable Treasury yield. Investors
were expecting the bonds to price with a similar yield before the
sale was delayed.
Despite Wells Fargo's troubles, its bonds have held relatively
steady in recent weeks. Its 4.4% notes due 2046 last traded with a
yield 1.78 percentage points above Treasurys, compared with a 1.92
percentage point spread at the start of the month, according to
MarketAxess. That suggests investors have few concerns about the
bank's long-term credit quality.
Write to Sam Goldfarb at sam.goldfarb@wsj.com
(END) Dow Jones Newswires
October 19, 2016 16:25 ET (20:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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