Wells Fargo plans contingent coupon market-linked callables on indexes

By Susanna Moon

Chicago, Jan. 28 – Wells Fargo & Co. plans to price market-linked securities due May 1, 2020 –callable with contingent coupon and contingent downside linked to the lowest performing of the S&P 500 index and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 9.2% to 11.2% if each index closes at or above its 70% coupon threshold on the observation date for that month.

The notes will be callable at on any interest payment date after six months.

The payout at maturity will be par unless any index ever closes below its 70% downside threshold during the life of the notes, in which case the payout will be par plus the return with exposure to any losses to the worst performing index beyond the buffer.

Wells Fargo Securities LLC is the agent.

The notes will price on Jan. 31.

The Cusip number is 95001H2H3.

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