Wells Fargo to price equity-linked notes with coupon linked to Lennar

By Angela McDaniels

Tacoma, Wash., June 26 - Wells Fargo & Co. plans to price equity-linked securities due June 2014 linked to the common stock of Lennar Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be set at pricing. Interest will be payable quarterly.

The face amount of each security will be equal to the initial share price.

The payout at maturity will be, at the issuer's option, a number of Lennar shares equal to the settlement amount divided by the final share price or an amount in cash equal to the settlement amount.

If the final share price is greater than the upside participation threshold, the settlement amount will be par plus (a) the upside participation rate multiplied by the result of (b) the final share price minus the upside participation threshold. The upside participation threshold will be greater than the initial share price, and the upside participation rate will be less than 100%.

If the final share price is greater than or equal to the principal return threshold and less than or equal to the upside participation threshold, the settlement amount will be par. The principal return threshold will be greater than the initial share price but less than the upside participation threshold.

If the final share price is less than the principal return threshold, the settlement amount will be the downside exchange ratio multiplied by the final share price, provided that the payout will not be less than the minimum repayment amount. The downside exchange ratio will be the initial share price divided by the principal return threshold.

Wells Fargo Securities, LLC is the agent.

The notes are expected to price in June.

The Cusip number is 949746564.

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