Wells Fargo will price market-linked securities linked to ETF basket

By Devika Patel

Knoxville, Tenn., Aug. 24 – Wells Fargo & Co. plans to price 0% market-linked securities with leveraged upside participation to a cap and contingent downside due Sept. 7, 2022 linked to a basket of four exchange traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket components are the SPDR S&P 500 exchange traded fund with a 45% weight, iShares Russell 2000 exchange traded fund with a 20% weight, iShares MSCI EAFE exchange traded fund with a 20% weight and the iShares MSCI Emerging Markets exchange traded fund with a 15% weight.

The payout at maturity will be par plus 150% of any basket gain, subject to a maximum payout of 44% to 49%, with the exact cap to be set at pricing.

Investors will receive par if the basket falls by up to 30% and will lose 1% for every 1% decline from the initial level if the basket falls by more than 30%.

Wells Fargo Securities, LLC is the agent.

The notes (Cusip: 95001B5T7) will price Aug. 30 and settle Sept. 7.

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