Published on 3/24/2020 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $1 million contingent coupon market-linked notes on indexes
Chicago, March 24 – Wells Fargo Finance LLC priced $1 million of market-linked securities due Dec. 13, 2024 – callable with contingent coupon and contingent downside linked to the least performing of the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Wells Fargo & Co.
Each quarter, the notes will pay a contingent coupon at an annual rate of 7% if each index closes at or above its 60% coupon threshold on the observation date for that quarter.
The notes maybe called at par plus any coupon due on any quarterly optional redemption date beginning after one year.
The payout at maturity will be par unless any index finishes below its 60% downside threshold, in which case investors will lose 1% for every 1% decline of the least performing index.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo Finance LLC
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| Guarantor: | Wells Fargo & Co.
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| Issue: | Market linked securities – callable with contingent coupon and contingent downside
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index
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| Amount: | $1,000,000
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| Maturity: | Dec. 13, 2024
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| Coupon: | 7% annualized, payable each quarter that each index closes at or above coupon threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any index falls by more than 40%, in which case 1% loss per 1% decline of worst performing index
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| Call: | At par plus any coupon due on any quarterly optional redemption date beginning after one year
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| Initial levels: | 25018.16 for Dow, 1350.898 for Russell, 8372.266 for Nasdaq
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| Coupon thresholds: | 15010.896 for Dow, 810.5388 for Russell, 5023.3596 for Nasdaq; 60% of initial levels
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| Downside thresholds: | 15010.896 for Dow, 810.5388 for Russell, 5023.3596 for Nasdaq; 60% of initial levels
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| Pricing date: | March 10
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| Settlement date: | March 13
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 1.4%
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| Cusip: | 95001HGV7
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