By Toni Weeks
San Diego, May 1 - Wells Fargo & Co. priced $2.38 million of 0% growth securities with upside participation to a cap and fixed percentage buffered downside due Nov. 6, 2015 linked to a basket of three unequally weighted exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the SPDR S&P 500 ETF trust with a 50% weight, the SPDR S&P MidCap 400 ETF trust with a 25% weight and the iShares Russell 2000 index fund with a 25% weight.
The payout at maturity will be par plus 1.5 times any gain in the basket, up to a maximum return of 37%.
Investors will receive par if the basket declines by 10% or less and will be exposed to losses beyond the 10% buffer.
Wells Fargo Securities, LLC is the underwriter.
| Issuer: | Wells Fargo Securities, LLC
|
| Issue: | Growth securities with upside participation to a cap and fixed percentage buffered downside
|
| Underlying components: | SPDR S&P 500 ETF trust (50% weight), SPDR S&P MidCap 400 ETF trust (25% weight) and iShares Russell 2000 index fund (25% weight)
|
| Amount: | $2,379,000
|
| Maturity: | Nov. 6, 2015
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 1.5 times any gain the basket, capped at 37%; par if basket declines by up to 10%; exposure to losses beyond 10%
|
| Initial prices: | $139.77 for SPDR S&P 500 ETF, $180.20 for SPDR S&P MidCap 400 ETF and $81.43 for iShares Russell
|
| Threshold prices: | 90% of initial prices
|
| Pricing date: | April 30
|
| Settlement date: | May 8
|
| Underwriter: | Wells Fargo Securities, LLC
|
| Fees: | 2%
|
| Cusip: | 94986RJF9
|
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