Published on 11/7/2019 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $2.75 million contingent market-linked autocalls on indexes
By Sarah Lizee
Olympia, Wash., Nov. 7 – Wells Fargo Finance LLC priced $2.75 million of market-linked securities due Nov. 6, 2029 – autocallable with contingent coupon and contingent downside linked to the least performing of the Dow Jones industrial average, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Wells Fargo & Co.
The notes will pay a contingent quarterly coupon at an annual rate of 7.25% if each index closes at or above its 75% coupon threshold on the observation date for that period.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date beginning in November 2020.
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 – autocallable with contingent coupon and contingent downside
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| Underlying indexes: | Dow Jones industrial average, S&P 500 index, Russell 2000 index
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| Amount: | $2.75 million
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| Maturity: | Nov. 6, 2029
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| Coupon: | 7.25% annualized, payable quarterly if each index closes at or above coupon threshold on observation date for that period
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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 if each index closes at or above its initial level on any interest payment date beginning in November 2020
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| Initial levels: | 27,071.46 for Dow, 1,577.073 for Russell, 3,036.89 for S&P
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| Coupon thresholds: | 20,303.595 for Dow, 1,182.80475 for Russell, 2,277.6675 for S&P, 75% of initial levels
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| Downside thresholds: | 16,242.876 for Dow, 946.2438 for Russell, 1,822.134 for S&P, 60% of initial levels
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| Pricing date: | Oct. 29
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| Settlement date: | Oct. 31
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 3.5%
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| Cusip: | 95001HBH3
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