Published on 3/6/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $2.05 million contingent market-linked callable notes on indexes
By Wendy Van Sickle
Columbus, Ohio, March 6 – Wells Fargo & Co. priced $2.05 million of market-linked securities due Feb. 28, 2020 – callable with contingent coupon and contingent downside linked to the least performing of the S&P 500 index, 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 contingent quarterly coupon at an annualized rate if each index closes at or above its 75% coupon threshold on the observation date for that quarter. The coupon rate is 9.2% for the first five years and 12.2% thereafter.
The notes will be callable at par on any quarterly payment date after one year.
The payout at maturity will be par unless any index finishes below its 60% downside 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, Russell 2000 and Euro Stoxx 50
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| Amount: | $2,045,000
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| Maturity: | Feb. 28, 2020
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| Coupon: | Payable quarterly if each index closes at or above coupon threshold on observation date for that quarter; annualized rate is 9.2% for first five years, 12.2% thereafter
|
| 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 quarterly payment date after one year
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| Initial levels: | 2,779.6 for S&P, 1,559.332 for Russell and 3,463.18 for Stoxx
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| Coupon thresholds: | 2,084.70 for S&P, 1,169.499 for Russell and 2,597.385 for Stoxx; 70% of initial levels
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| Downside thresholds: | 1,667.76 for S&P, 935.5992 for Russell and 2,077.908 for Stoxx; 60% of initial levels
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| Pricing date: | Feb. 26
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| Settlement date: | Feb. 28
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4.25%
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| Cusip: | 95001B2H6
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