Published on 12/6/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $585,000 leveraged market-linked notes tied to fund basket
By Sarah Lizee
Olympia, Wash., Dec. 6 – Wells Fargo & Co. priced $585,000 of 0% market-linked notes with leveraged upside participation to a cap and fixed percentage buffered downside due Dec. 7, 2023 linked to a basket of exchange-traded funds, according to a 424B2 filed with the Securities and Exchange Commission.
The basket consists of the SPDR S&P 500 ETF Trust with a 50% weight, the iShares Russell 2000 ETF with a 25% weight, the iShares MSCI EAFE ETF with a 15% weight, the iShares MSCI Emerging Markets ETF with a 10% weight, the Invesco DB Commodity Index Tracking Fund with a 5% weight and the Vanguard Real Estate ETF with a 5% weight.
The payout at maturity will be par plus 1.5 times any basket gain, capped at par plus 54%.
Investors will receive par if the basket falls by up to 15% and lose 1% for each 1% decline beyond 15%.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Market-linked notes with leveraged upside participation to a cap and fixed percentage buffered downside
|
| Underlying basket: | SPDR S&P 500 ETF Trust (50% weight), iShares Russell 2000 ETF (25% weight), iShares MSCI EAFE ETF (15% weight), iShares MSCI Emerging Markets ETF (10% weight), Invesco DB Commodity Index Tracking Fund (5% weight) and Vanguard Real Estate ETF (5% weight)
|
| Amount: | $585,000
|
| Maturity: | Dec. 7, 2023
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 1.5 times any basket gain, capped at par plus 54%; par if basket falls by up to 15%; 1% loss for every 1% drop beyond 15%
|
| Initial levels: | $275.65 for S&P fund, $152.62 for Russell fund, $62.77 for EAFE fund, $41.08 for EM fund, $15.29 for Invesco fund, $81.98 for Vanguard fund
|
| Pricing date: | Nov. 30
|
| Settlement date: | Dec. 7
|
| Agents: | Wells Fargo Securities, LLC
|
| Fees: | 2.62%
|
| Cusip: | 95001BB37
|
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