Wells Fargo eyes market-linked autocallables tied to SPDR S&P Oil ETF

By Devika Patel

Knoxville, Tenn., April 9 – Wells Fargo & Co. plans to price market-linked securities – autocallable with contingent coupon and contingent downside due April 21, 2020 linked to 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 continent quarterly coupon at an annual rate that is expected to fall between 8.5% and 9.5% if the fund closes at or above the 75% threshold level on the observation date for that quarter. The exact coupon will be set at pricing.

The notes will be called at par if the fund closes at or above the initial level on any quarterly observation date from October 2018 to January 2020, inclusive.

The payout at maturity will be par unless the fund finishes below the threshold level, in which case investors will lose 1% for each 1% decline of the fund from its initial level.

Wells Fargo Securities LLC is the agent.

The notes (Cusip: 95001B3A0) will price April 16 and settle April 19.

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