By Angela McDaniels
Tacoma, Wash., April 17 - Wells Fargo & Co. amended some of the terms of its $12.16 million of 0.125% exchangeable notes due March 2, 2016 linked to a basket of common stocks with the consent of 100% of the noteholders, according to a 424B2 filing with the Securities and Exchange Commission.
The notes were issued on March 2, 2011. They priced at 110 for proceeds of $13,370,500.
A new stock was added to the underlying basket, the weights of the existing stocks were changed, and their exchange ratios were adjusted accordingly. The basket now consists of Danaher Corp. with a 34.64% weight, Textron Inc. with a 32.42% weight, Ingersoll-Rand plc with a 25.35% weight and Allegion plc with a 7.59% weight.
Originally, the basket consisted of Danaher with a 35% weight, Textron with a 35% weight and Ingersoll-Rand with a 30% weight.
The notes are now callable beginning March 2, 2015, which was pushed back from March 2, 2014. If Wells Fargo calls the notes, it will pay an amount in cash equal to the greater of par and the basket value, which on any day equals the sum of the products of the closing price of each basket stock and its exchange ratio on that day.
The remaining terms are unchanged.
Holders have the right to exchange their securities at any time for a number of shares of each basket stock equal to its exchange ratio. Exchanges can be settled in shares or cash at the issuer's option.
The payout at maturity will be par.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Exchangeable notes
|
| Underlying stocks: | Danaher Corp. (34.64% weight), Textron Inc. (32.42% weight), Ingersoll-Rand plc (25.35% weight) and Allegion plc (7.59% weight)
|
| Amount: | $12,155,000
|
| Proceeds: | $13,370,500
|
| Maturity: | March 2, 2016
|
| Coupon: | 0.125%, payable semiannually
|
| Price: | 110
|
| Payout at maturity: | Par
|
| Call option: | Beginning March 2, 2015 for cash amount equal to greater of par and basket value, which on any day equals sum of products of closing price of each basket stock and its exchange ratio on that day
|
| Exchange option: | Holders may exchange securities at any time for number of shares of each basket stock equal to its exchange ratio
|
| Exchange ratios: | 6.347695 for Danaher, 11.502752 for Textron, 6.103878 for Ingersoll-Rand and 2.031497 for Allegion
|
| Pricing date: | Feb. 23, 2011
|
| Settlement date: | March 2, 2011
|
| Agent: | Wells Fargo Securities, LLC
|
| Fees: | 0.15%
|
| Cusip: | 94986RCZ2
|
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