Published on 12/11/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $1.85 million 11% contingent market-linked autocalls tied to stocks
By Susanna Moon
Chicago, Dec. 11 – Wells Fargo & Co. priced $1.85 million of market-linked securities due Dec. 1, 2020 – autocallable with contingent coupon and contingent downside linked to the least performing of the common stocks of CVS Health Corp., H&R Block, Inc. and Harley-Davidson, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 11% if each stock closes at or above its 50% coupon threshold on the observation date for that month.
The notes will be called at par if each stock closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless any stock finishes below its 50% downside 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: | CVS Health Corp. (Symbol: CVS), H&R Block, Inc. (Symbol: HRB) and Harley-Davidson, Inc. (Symbol: HOG)
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| Amount: | $1,845,000
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| Maturity: | Dec. 1, 2020
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| Coupon: | 11% annualized, payable monthly if each stock closes at or above 50% coupon 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 50%, in which investors will receive par plus return of the worst 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 May 2018 through August 2020
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| Initial levels: | $72.70 for CVS, $25.55 for H&R Block and $49.25 for Harley-Davidson
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| Downside thresholds: | $36.35 for CVS, $12.775 for H&R Block and $24.625 for Harley-Davidson; 50% of initial levels
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| Pricing date: | Nov. 28
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| Settlement date: | Dec. 1
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 3.35%
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| Cusip: | 95000E4N6
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