Wells Fargo plans 0% growth securities linked to basket of three ETFs

By Marisa Wong

Madison, Wis., Aug. 2 - Wells Fargo & Co. plans to price 0% growth securities with leveraged upside participation to a cap and fixed percentage buffered downside due March 2015 linked to a basket of three exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the SPDR S&P 500 ETF trust with a 50% weight, the SPDR S&P MidCap 400 ETF trust with a 25% weight and the iShares Russell 2000 index fund with a 25% weight.

The payout at maturity will be par plus 1.5 times any gain in the basket, up to a maximum return of 25% to 30%. The exact cap will be set at pricing.

Investors will receive par if the basket declines by 10% or less and will be exposed to losses beyond the 10% buffer.

The notes (Cusip: 94986RKZ3) are expected to settle in September.

Wells Fargo Securities, LLC is the underwriter.

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