Wells Fargo to price leveraged buffered notes linked to ETF basket

By Marisa Wong

Morgantown, W.Va., Oct. 15 – Wells Fargo & Co. plans to price 0% market-linked securities with leveraged upside participation to a cap and buffered downside with multiplier due Nov. 6, 2019 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the SPDR S&P 500 ETF trust with a 60% weight, the SPDR S&P MidCap 400 ETF Trust with a 20% weight and the iShares Russell 2000 ETF with a 20% 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 40% to 45% and will be set at pricing. Investors will receive par if the basket decreases by up to 10% and will lose 1% for every 1% that the basket declines beyond 10%.

Wells Fargo Securities LLC is the agent.

The notes will price Oct. 30 and settle Nov. 6.

The Cusip number is 94986RZE4.

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