Published on 10/10/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $5 million contingent coupon notes linked to indexes, EAFE ETF
By Angela McDaniels
Tacoma, Wash., Oct. 10 – Wells Fargo & Co. priced $5 million of callable market-linked securities with contingent coupon and contingent downside due Oct. 10, 2019 linked to the lowest performing of the Russell 2000 index, the S&P 500 index and the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes pay a contingent coupon at the rate of 7.65% per year if each underlier closes at or above its threshold level, 70% of its initial level, on the calculation day for that month.
If each underlier’s final level 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 index level.
Beginning six months after the issue date, the notes will be callable monthly at par.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Callable market-linked securities with contingent coupon and contingent downside
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| Underliers: | Russell 2000 index, S&P 500 index and iShares MSCI EAFE ETF
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| Amount: | $5 million
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| Maturity: | Oct. 10, 2019
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| Coupon: | 7.65% per year, payable monthly if each underlier closes at or above threshold level on calculation day for that month
|
| Price: | Par
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| Payout at maturity: | If each underlier finishes at or above threshold level, par; otherwise, 1% loss for every 1% that worst-performing underlier’s final level is less than initial level
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| Call option: | Beginning six months after issue date, notes will be callable monthly at par
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| Initial levels: | 2,537.74 for S&P 500, 1,507.765 for Russell 2000 and $68.52 for ETF
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| Threshold values: | 1,776.418 for S&P 500, 1,055.4355 for Russell 2000 and $47.964 for ETF; 70% of initial levels
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| Pricing date: | Oct. 5
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| Settlement date: | Oct. 12
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| Agent: | Wells Fargo Securities LLC
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| Fees: | None
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| Cusip: | 95000E3T4
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