Published on 5/27/2016 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $5.45 million market-linked notes on Russell, Stoxx
By Susanna Moon
Chicago, May 27 – Wells Fargo & Co. priced $5.45 million of 0% market-linked securities – autocallable contingent coupon and contingent downside due May 27, 2026 linked to the lowest performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 9.6% if each index closes above its 70% coupon threshold level on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly call date from May 2017 to February 2026.
The payout at maturity will be par plus the final coupon unless either index finishes below the 50% downside threshold, in which case investors will be fully exposed to any losses of worse performing index.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Wells Fargo & Co.
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| Issue: | Market-linked securities – autocallable with contingent coupon and contingent downside
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| Underlying index: | Russell 2000 and the Euro Stoxx 50
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| Amount: | $5,446,000
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| Maturity: | May 27, 2026
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| Coupon: | 9.6%, payable quarterly if each index closes above its 70% coupon threshold on observation date for that quarter.
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| Call: | At par plus contingent coupon if each index closes at or above its initial level on any quarterly call date from May 2017 to February 2026
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| Price: | Par
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| Payout at maturity: | Par unless either index falls by more than 50%, in which case full exposure to any losses of worse performing index
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| Initial level: | 1,112.276 for Russell, 2,962 for Stoxx
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| Coupon threshold: | 778.5932 for Russell, 2,073.512 for Stoxx; 70% of initial level
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| Trigger level: | 556.138 for Russell, 1,481.08 for Stoxx; 50% of initial level
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| Pricing date: | May 20
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| Settlement date: | May 25
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 3.75%
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| Cusip: | 94986RL90
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