Published on 2/5/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $2.88 million 14% contingent market-linked autocalls on stocks
By Susanna Moon
Chicago, Feb. 5 – Wells Fargo & Co. priced $2.88 million of market-linked securities due Jan. 29, 2021 – autocallable with contingent coupon and contingent downside linked to the least performing of the class B common stock of Nike, Inc. and the common stocks of General Motors Co., Applied Materials, Inc. and MGM Resorts International, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 14% if each stock closes at or above its 60% threshold on the observation date for that month.
The notes will be called at par if each stock closes at or above its 95% redemption threshold on any quarterly observation date six months.
The payout at maturity will be par unless any stock finishes below its 60% threshold, in which case the payout will be par plus the return of the worst performing stock 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 stocks: | Nike, Inc. (Symbol: NKE), General Motors Co. (Symbol: GM), Applied Materials, Inc. (Symbol: AMAT) and MGM Resorts International (Symbol: MGM)
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| Amount: | $2,881,000
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| Maturity: | Jan. 29, 2021
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| Coupon: | 14% annualized, payable monthly if each stock closes at or above 60% threshold on observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless any stock falls by more than 40%, in which case 1% loss per 1% decline of worst performing stock
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| Call: | At par if each stock closes at or above 95% call level on any quarterly review date beginning in July 2018
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| Initial levels: | $68.04 for Nike, $43.49 for GM, $57.12 for Applied Materials and $37.05 for MGM
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| Thresholds: | $40.824 for Nike, $26.094 for GM, $34.272 for Applied Materials and $22.23 for MGM; 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: | 3.9%
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| Cusip: | 95000E5F2
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