Wells Fargo plans variable annual interest CDs linked to 10 stocks

By Susanna Moon

Chicago, May 11 – Wells Fargo Bank, NA plans to price variable annual interest market-linked certificates of deposit due April 1, 2022 linked to a basket of 10 equally weighted stocks, according to a term sheet.

The underlying companies are Apple Inc., Exelon Corp., AT&T Inc., Hewlett-Packard Co., Baxter International Inc., Merck & Co., Inc., Duke Energy Corp., Microsoft Corp., Eli Lilly and Co. and Wal-Mart Stores, Inc.

The CDs will pay a coupon equal to the sum of the basket components' weighted returns, with a floor of 0.75%. On any valuation date, if a component's return is at least zero, it will be given a fixed return of 5% to 5.5%. Otherwise, its component return will equal the commodity return, floor of negative 15%.

The payout at maturity will be par.

The exact deal terms will be set at pricing.

The notes will price on May 26 and settle on May 28.

The Cusip number is 94986TTW7.

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