Wells Fargo plans contingent annual interest CDs linked to 20 stocks

By Angela McDaniels

Tacoma, Wash., Aug. 4 - Wells Fargo Bank, NA plans to price contingent annual interest market-linked certificates of deposit due Aug. 27, 2018 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket includes Altria Group, Inc., American Electric Power, Bristol-Myers Squibb Co., Carnival Corp., Colgate Palmolive Co., Duke Energy Corp., Exxon Mobil Corp., Frontier Communications Corp., General Electric Co., International Business Machines Corp., International Paper Co., Johnson & Johnson, JPMorgan Chase & Co., Microsoft Corp., Nucor Corp., Occidental Petroleum Corp., Travelers Cos., Inc., Time Warner, Inc., Verizon Communications Inc. and Waste Management, Inc.

In August of each year, the CDs will pay a coupon equal to the sum of the stocks' weighted component returns, subject to a floor of zero. If a stock's underlying return is greater than zero, its component return will be fixed at 8% to 10%. Otherwise, its component return will be the greater of its underlying return and negative 30%.

The exact fixed component return will be set at pricing.

The payout at maturity will be par.

The CDs (Cusip: 949748J99) are expected to price Aug. 25 and settle Aug. 30.

Advisors Asset Management, Inc. is the distributor.

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