By Toni Weeks
San Luis Obispo, Calif., Feb. 18 – Wells Fargo & Co. priced $5 million of 0.125% optionally exchangeable notes due Feb. 21, 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 with a 60% weight and Halliburton Co. with a 40% weight.
Interest is payable semiannually.
Each security will be exchangeable at any time for a number of shares of each basket stock equal to its exchange ratio. The issuer can settle exchanges in shares or cash.
Beginning Feb. 21, 2018, the securities will be callable at any time. The redemption price will be the greater of par of $1,000 and parity on the pricing date
The payout at maturity or upon redemption will be the greater of par and parity, which on any day is the Schlumberger exchange ratio multiplied by its closing share price plus the Halliburton exchange ratio multiplied by its closing share price.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Optionally exchangeable notes
|
| Underlying stocks: | Schlumberger NV with a 60% weight (Symbol: SLB) and Halliburton Co. with a 40% weight (Symbol: HAL)
|
| Amount: | $5 million
|
| Maturity: | Feb. 21, 2020
|
| Coupon: | 0.125%, payable semiannually
|
| Price: | 110
|
| Payout at maturity: | Greater of par and parity, which on any day equals Schlumberger exchange ratio multiplied by its closing share price plus Halliburton exchange ratio multiplied by its closing share price
|
| Exchange option: | For 6.33412 Schlumberger shares and 8.50396 Halliburton shares per note beginning Feb. 23
|
| Call option: | At greater of par and parity beginning Feb. 21, 2018
|
| Initial share prices: | $86.5069 for Schlumberger and $42.9561 for Halliburton, each based on an intra-day price of stock on pricing date
|
| Initial basket value: | $913.242, which is parity on the pricing date
|
| Pricing date: | Feb. 13
|
| Settlement date: | Feb. 23
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | None
|
| Cusip: | 94986RVY4
|
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