Wells Fargo plans notes exchangeable for Schlumberger, Halliburton

By Angela McDaniels

Tacoma, Wash., Feb. 13 – Wells Fargo & Co. plans to price 0.125% optionally exchangeable securities due February 2020 exchangeable for a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket components are Schlumberger NV (Schlumberger Ltd.) with a 60% weight and Halliburton Co. with a 40% weight.

Interest will be payable semiannually.

Each $1,000 principal amount of notes will be exchangeable at any time for a number of shares of each stock equal to its exchange ratio or, at the issuer’s option, a cash amount equal to the value of those shares. For each stock, the exchange ratio will equal (a) the initial basket value multiplied by the weighting of the applicable stock divided by (b) that stock’s initial share price.

Beginning in February 2018, the notes will be callable at any time.

The payout at maturity or upon redemption will be the greater of par and parity, which on any day is the sum of the products of the closing price of each basket stock on that day and its exchange ratio.

Wells Fargo Securities LLC is the agent.

The notes will price and settle in February.

The Cusip number is 94986RVY4.

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