Wells Fargo to price leveraged buffered notes linked to ETF basket

By Angela McDaniels

Tacoma, Wash., Sept. 11 – Wells Fargo & Co. plans to price 0% market-linked securities with leveraged upside participation to a cap and buffered downside with multiplier due April 5, 2019 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the iShares MSCI EAFE ETF (57% weight), the iShares Russell 2000 ETF (16% weight), the SPDR S&P MidCap 400 ETF Trust (15% weight) and the iShares MSCI Emerging Markets ETF (12% weight).

If the basket return is positive, the payout at maturity will be par plus 150% of the gain, subject to a maximum return that is expected to be 64% to 70% and will be set at pricing. Investors will receive par if the basket decreases by up to 15% and will lose 1.1765% for every 1% that the basket declines beyond 15%.

Wells Fargo Securities LLC is the agent.

The notes will price Sept. 30 and settle Oct. 5.

The Cusip number is 94986RYW5.

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