Wells Fargo plans autocallable access notes tied to Homebuilders ETF

By Toni Weeks

San Luis Obispo, Calif., Feb. 27 - Wells Fargo & Co. plans to price autocallable access securities with contingent coupon and contingent downside due March 2, 2016 linked to the SPDR S&P Homebuilders exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent coupon at an annualized rate of 6% to 6.2% if the closing price of the fund is greater than or equal to the threshold price, 70% of the initial price, on any quarterly calculation date. The exact coupon will be set at pricing. Interest is payable quarterly.

The notes will be automatically called at par plus accrued interest if the fund closes at or above the initial price on any of the first seven quarterly calculation dates.

If the notes are not called and the fund's final level is at least 70% of the initial price, the payout at maturity will be par. Otherwise, investors will be fully exposed to the fund decline from the initial share price.

The notes (Cusip: 94986RTC5) are expected to settle March 4.

Wells Fargo Securities, LLC is the agent.

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