Published on 7/20/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $2.59 million contingent market-linked autocalls tied to indexes
By Wendy Van Sickle
Columbus, Ohio, July 20 – Wells Fargo & Co. priced $2.59 million of market-linked securities due June 29, 2022 – autocallable with contingent coupon and contingent downside linked to the lesser 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 7% if each index closes at or above its 65% coupon threshold on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date after six months.
The payout at maturity will be par unless any index finishes below its 65% 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 – autocallable with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Euro Stoxx 50 index
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| Amount: | $2.59 million
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| Maturity: | June 29, 2022
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| Coupon: | 7% annualized, payable quarterly if each index closes at or above 65% 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 35%, 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 after six months
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| Initial levels: | 2,718.37 for S&P, 1,643.069 for Russell, 3,395.6 for Stoxx
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| Coupon thresholds: | 1,766.9405 for S&P, 1,067.99485 for Russell, 2,297.14 for Stoxx; 65% of initial levels
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| Downside thresholds: | 1,766.9405 for S&P, 1,067.99485 for Russell, 2,297.14 for Stoxx; 65% of initial levels
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| Pricing date: | June 29
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| Settlement date: | July 5
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 1.575%
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| Cusip: | 95001B4F8
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