By Toni Weeks
San Luis Obispo, Calif., March 10 - Wells Fargo & Co. priced $13.67 million of 0.125% optionally exchangeable notes due March 13, 2019 exchangeable for a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket components are Mylan Inc. with a 75% weight and American Airlines Group Inc. with a 25% weight.
Interest is payable semiannually.
Each security will be exchangeable at any time for a number of shares of each basket stock equal to its exchange ratio. The issuer can settle exchanges in shares or cash.
Beginning March 13, 2016, the securities will be callable at any time. The redemption price will be the greater of par of $1,000 and parity on the pricing date
The payout at maturity or upon redemption will be the greater of par and parity, which on any day is the Mylan exchange ratio multiplied by its closing share price plus the American Airlines exchange ratio multiplied by its closing share price.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Optionally exchangeable notes
|
| Underlying stocks: | Mylan Inc. with a 75% weight (Symbol: MYL) and American Airlines Group Inc. with a 25% weight (Symbol: AAL)
|
| Amount: | $13.67 million
|
| Maturity: | March 13, 2019
|
| Coupon: | 0.125%, payable semiannually
|
| Price: | 110
|
| Payout at maturity: | Greater of par and parity, which on any day equals 16.316 multiplied by closing share price
|
| Exchange option: | For 12.538 Mylan shares and 5.8818 American Airlines shares per note beginning March 13
|
| Call option: | At greater of par and parity beginning March 13, 2016
|
| Initial share prices: | $55.0052 for Mylan and $39.084 for American Airlines, each based on an intra-day price of stock on pricing date
|
| Initial basket value: | $919.54, which is parity on the pricing date
|
| Pricing date: | March 6
|
| Settlement date: | March 13
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | None
|
| Cusip: | 94986RTK7
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
