Published on 4/26/2016 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $3.33 million contingent coupon autocallables linked to S&P, ETFs
By Angela McDaniels
Tacoma, Wash., April 26 – Wells Fargo & Co. priced $3.33 million of autocallable market-linked securities with contingent coupon and contingent downside due April 28, 2022 linked to 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 9% per year if the worst-performing underlier closes at or above its threshold level, 70% of its initial level, on the calculation day for that quarter.
The notes will be automatically called at par if the worst-performing underlier closes at or above its initial level on any quarterly calculation date from October 2016 to January 2022, inclusive.
If the final level of the worst-performing underlier is greater than or equal to its threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final level of the worst-performing underlier is less than its initial level.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Autocallable market-linked securities with contingent coupon and contingent downside
|
| Underliers: | iShares MSCI EAFE ETF, S&P 500 index and SPDR S&P MidCap 400 ETF trust
|
| Amount: | $3,331,000
|
| Maturity: | April 28, 2022
|
| Coupon: | Notes pay contingent coupon quarterly at rate of 9% per year if worst-performing underlier closes at or above threshold level on calculation day for that quarter
|
| Price: | Par
|
| Payout at maturity: | If final level of worst-performing underlier is greater than or equal to threshold level, par; otherwise, 1% loss for every 1% that final level of worst-performing underlier is less than initial level
|
| Call: | Automatically called at par if worst-performing underlier closes at or above initial level on any quarterly calculation date from October 2016 to January 2022, inclusive
|
| Initial levels: | 2,091.58 for index, $268.70 for midcap trust and $59.54 for EAFE ETF
|
| Threshold levels: | 1,464.106 for index, $188.09 for midcap trust and $41.678 for EAFE ETF; 70% of initial levels
|
| Pricing date: | April 22
|
| Settlement date: | April 27
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | 3.25%
|
| Cusip: | 94986RK83
|
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