Wells Fargo Files for $13 Billion Mixed Shelf Offering
Wells Fargo (NYSE: WFC) plans to issue a mixed shelf offering of up to $13 billion, according to a Monday regulatory filing with the Securities and Exchange Commission. The proceeds will be used to repay maturing debt obligations, reduce outstanding debt, repurchase outstanding securities, and invest in the company's subsidiaries.
A shelf offering allows a company to issue new securities without having to conduct the entire issuance at once. Wells Fargo will be able to offer the securities gradually over a three-year period without having to re-register them. This allows the company to be more strategic about the timing of when it puts them on the market, theoretically allowing it to get better prices for them.
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Source Fool.com
