New York, July 7 – Wells Fargo & Co. priced a $14 million principal amount add on to its 0.25% optionally exchangeable securities due June 24, 2022 exchangeable for the class P common stock of Kinder Morgan, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The additional notes priced at 97.69103336 including accrued interest from June 24.
Wells Fargo originally priced $55 million of the securities at par on June 17.
Interest is payable semiannually.
Each note has a principal amount of $1,000.
Beginning July, investors may exchange their notes for a number of Kinder Morgan shares equal to the exchange ratio, which is initial parity divided by the initial share price. The issuer has the option to settle exchanges in cash instead of shares.
The initial parity was set at $906.618 at pricing for the original $55 million. Parity for the add on is $871.1427. Subsequently, parity will equal the exchange ratio multiplied by the closing share price on that day.
The notes will be callable at the greater of par and parity after three years.
The payout at maturity will be the greater of par and parity.
Wells Fargo Securities LLC is the underwriter.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Optionally exchangeable securities
|
| Underlying stock: | Kinder Morgan, Inc. (Symbol: KMI)
|
| Amount: | $14 million add on, $55 million originally
|
| Maturity: | June 24, 2022
|
| Coupon: | 0.25%, payable semiannually
|
| Price: | 97.69103336 for add on, including accrued interest, par for original
|
| Payout at maturity: | Greater of par and parity
|
| Exchange option: | For 22.97499 Kinder Morgan shares per note beginning July 9
|
| Call option: | At greater of par and parity beginning June 25, 2018
|
| Initial share price: | $37.9170 for add on, $39.46109 originally, which is based on an intra-day price of stock on pricing date
|
| Parity: | $871.1427 for add on, $906.618 initially; after that, exchange ratio multiplied by closing share price
|
| Pricing date: | July 1 for add on, June 17 originally
|
| Settlement date: | July 6 for add on, June 24 originally
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | None
|
| Cusip: | 94986RXR7
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
