Wells Fargo plans contingent annual interest CDs linked to 16 stocks

By Angela McDaniels

Tacoma, Wash., Dec. 2 - Wells Fargo Bank, NA plans to price contingent annual interest market-linked certificates of deposit due Dec. 31, 2016 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket includes Alcoa Inc., American Express Co., Apple Inc., AT&T Inc., Bank of America Corp., Ely Lilly & Co., Exelon Corp., General Electric Co., Home Depot, Inc., Intel Corp., Lockheed Martin Corp., Merck & Co., Inc., Philip Morris International Inc., Schlumberger NV (Schlumberger Ltd.), Verizon Communications Inc. and Wal-Mart Stores, Inc.

In December of each year, the CDs will pay a coupon equal to the sum of the basket components' weighted returns, with a floor of zero. The return of each basket component will be subject to a floor of negative 30% and a cap of 7% to 10% that will be set at pricing.

The payout at maturity will be par.

The CDs (Cusip 949748A80) are expected to price Dec. 27 and settle Dec. 31.

Incapital LLC is the distributor.

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