Wells Fargo plans variable annual interest CDs linked to 10 stocks

By Angela McDaniels

Tacoma, Wash., Feb. 11 – Wells Fargo Bank, NA plans to price variable annual interest certificates of deposit due Feb. 27, 2023 linked to a basket of 10 equally weighted stocks, according to a term sheet.

The underlying companies are Apple Inc., AT&T Inc., Bristol-Myers Squibb Co., Cisco Systems, Inc., Coca-Cola Co., Merck & Co., Inc., Nike, Inc., Procter & Gamble Co., Starbucks Corp. and Verizon Communications Inc.

Each year the CDs will pay a coupon equal to the sum of the stocks’ weighted component returns, subject to a minimum interest rate of 0.75%.

On any valuation date, if a stock’s underlying return is at least zero, its component return will be equal to the fixed component return, which is expected to be 5% to 5.25% and will be set at pricing. Otherwise, its component return will be equal to its underlying return, subject to a floor of negative 10%.

The payout at maturity will be par plus the final coupon.

Incapital LLC is the distributor.

The CDs will price Feb. 24.

The Cusip number is 94986TXE2.

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