Published on 12/26/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $610,000 8.7% contingent market-linked autocalls on indexes, fund
By Susanna Moon
Chicago, Dec. 26 – Wells Fargo & Co. priced $610,000 market-linked securities due Dec. 26, 2024 – autocallable with contingent coupon and contingent downside linked to the lesser performing of the of the Dow Jones industrial average, the Euro Stoxx 50 index and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.7% if each underlying component closes at or above its 75% threshold on the observation date for that quarter.
The notes will be called at par if each component closes at or above its initial level on any quarterly observation date after one year.
The payout at maturity will be par unless any component finishes below its 75% downside threshold, in which case the payout will be par plus the return of the worst performing index or fund with full exposure to any losses.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
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| Issue: | Market-linked securities – autocallable with contingent coupon and contingent downside
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| Underlying funds: | Dow Jones industrial average, Euro Stoxx 50 index and SPDR S&P Oil & Gas Exploration & Production ETF
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| Amount: | $3,639,000
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| Maturity: | Dec. 26, 2024
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| Coupon: | 8.7% annualized, payable quarterly if each component closes at or above 75% coupon threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any component falls by more than 25%, in which par plus return of worst performing index or fund with 1% loss per 1% decline
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| Call: | At par if each stock closes at or above its initial level on any quarterly review date from December 2018 through September 2024
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| Initial levels: | 24,726.65 for Dow, 3,552.65 for Stoxx and $69.68 for oil fund
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| Thresholds: | 18,544.9875 for Dow, 2,664.4875 for Stoxx and $52.26 for oil fund; 75% of initial levels
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| Pricing date: | Dec. 20
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| Settlement date: | Dec. 26
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 3.884%
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| Cusip: | 95000E4W6
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