Wells Fargo plans contingent coupon autocallables linked to ETFs, S&P

By Angela McDaniels

Tacoma, Wash., April 14 – Wells Fargo & Co. plans to price 0% autocallable market-linked securities with contingent coupon and contingent downside due April 28, 2022 linked to the worst performing of the iShares MSCI EAFE exchange-traded fund, the S&P 500 index and the SPDR S&P MidCap 400 ETF trust, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of at least 9% per year if each underlying component closes at or above its threshold value, 70% of its initial level, on the observation date for that quarter. The exact contingent coupon rate will be set at pricing.

From October 2016 to January 2022, the notes will be automatically called at par if the worst-performing underlying component closes at or above its initial level on any quarterly observation date.

If the notes are not called, the payout at maturity will be par unless the worst-performing underlying component finishes below its threshold value, in which case investors will lose 1% for every 1% that the worst-performing underlying component’s final level is below its initial level.

Wells Fargo Securities LLC is the agent.

The notes will price in April 22.

The Cusip number is 94986RK83.

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