By Susanna Moon
Chicago, Dec. 26 – Wells Fargo & Co. priced $2 million market-linked securities due Dec. 16, 2024 – autocallable with contingent coupon and contingent downside linked to the lesser performing of the of the common stocks of Celgene Corp. and Gilead Sciences, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of at least 9% if each stock closes at or above its 55% 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 one year.
The payout at maturity will be par unless either stock finishes below its 55% downside threshold, in which case the payout will be par plus the return of the worse 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: | Celgene Corp. (Symbol: CELG) and Gilead Sciences, Inc. (Symbol: GILD)
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| Amount: | $2 million
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| Maturity: | Dec. 16, 2024
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| Coupon: | 9% annualized, payable quarterly if each stock closes at or above 55% coupon threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either stock falls by more than 55%, in which investors will receive par plus return of worse performing index with 1% loss per 1% decline
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| Call: | At par if each stock closes at or above its initial level on any quarterly review date from December 2018 through September 2024
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| Initial levels: | $108.00 for Celgene and $75.88 for Gilead
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| Thresholds: | $59.40 for Celgene and $41.734 for Gilead; 55% of initial levels
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| Pricing date: | Dec. 11
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| Settlement date: | Dec. 14
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 3.9%
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| Cusip: | 95000E4V8
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