Published on 2/5/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $670,000 contingent market-linked callables on indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 5 – Wells Fargo & Co. priced $670,000 of market-linked securities due Jan. 31, 2028 – callable with contingent coupon and contingent downside linked to the least performing of the S&P 500 index, the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of if each index closes at or above its 75% coupon barrier on the observation date for that quarter. The annual rate will be 9% for the first five years and 12% thereafter.
The notes are callable at par on any quarterly observation date after one year.
The payout at maturity will be par unless any index finishes below its 60% threshold, in which case the payout will be par plus the return of the worst performing index with full exposure to any losses.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
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| Issue: | Market linked securities – callable with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500, Euro Stoxx 50 and Russell 2000
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| Amount: | $670,000
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| Maturity: | Jan. 31, 2028
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| Coupon: | Payable quarterly if each index closes at or above coupon barrier on observation date for that quarter; annual rate is 9% for the first five years, 12% thereafter
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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
|
| Call option: | At par on any interest payment date beginning in January 2019
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| Initial levels: | 2,872.87 for S&P, 1,608.058 for Russell, 3,647.41 for Stoxx
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| Coupon barriers: | 2,735.5575 for S&P, 1,206.0435 for Russell, 2,154.6525 for Stoxx; 75% of initial levels
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| Thresholds: | 1,723.722 for S&P, 964.8348 for Russell, 2,188.446 for Stoxx; 60% of initial levels
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| Pricing date: | Jan. 26
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| Settlement date: | Jan. 31
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4.25%
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| Cusip: | 95000EY42
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