A $200 million issue of Wells Fargo & Co. floating/adjustable-rate preferred stock was priced with an initial fixed- rate dividend of 6.59%, according to MCM CorporateWatch.

Each share was priced at $50.

If the preferred shares aren't called when the call provision begins after five years, the dividend steps up to 44 basis points over the highest point of a synthetic yield curve based on the yields on the 3-month Treasury bill, 10-year Treasury note, and 30-year Treasury bond.

The issue will be sold through underwriters led by Lehman Brothers Inc.

The issue is rated single-A2 by Moody's Investors Service Inc. and triple-B by Standard & Poor's.

Delivery is scheduled for Tuesday.

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