Wells Fargo plans contingent coupon autocallables on S&P and Russell

By Devika Patel

Knoxville, Tenn., May 15 – Wells Fargo & Co. plans to price market-linked securities due June 2, 2025 –callable with contingent coupon and contingent downside linked to the least performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 7% from August 2017 to May 2021 and at least 10% from August 2021 to May 2025 if each index closes at or above its coupon threshold level, 75% of its initial level, on the observation date for that quarter. The exact coupons will be set at pricing.

The notes will be callable at par on any coupon payment date from May 2018 to February 2025, inclusive.

The payout at maturity will be par unless either index finishes below its 60% downside threshold level, in which case investors will have one-to-one exposure to the decline of the worst-performing index.

Wells Fargo Securities LLC is the agent.

The notes (Cusip: 94986R5V9) will price on May 25 and settle on May 31.

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