Wells Fargo to price growth securities linked to basket of ETFs

By Angela McDaniels

Tacoma, Wash., Oct. 18 - Wells Fargo & Co. plans to price 0% growth securities with upside participation to a cap and contingent downside protection due May 2016 linked to a basket of 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 35% weight, the iShares MSCI EAFE index fund with a 20% weight, the iShares MSCI Emerging Markets index fund with a 20% weight, the SPDR S&P MidCap 400 ETF trust with a 15% weight and the iShares Russell 2000 index fund with a 10% weight.

The payout at maturity will be par plus 1.5 times any gain in the basket, up to a maximum return of 75% to 85% that will be set at pricing. Investors will receive par if the basket declines by 40% or less and will be fully exposed to the decline from the initial level if the basket falls by more than 40%.

The notes (Cusip: 94986RGD7) are expected to price in October and settle in November.

Wells Fargo Securities, LLC is the agent.

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