Published on 10/30/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $1.14 million callable market-linked notes on indexes
By Marisa Wong
Morgantown, W.Va., Oct. 30 – Wells Fargo & Co. priced $1.14 million of market-linked securities – callable with contingent coupon and contingent downside – due Oct. 29, 2027 linked to the least performing of the S&P 500 index, Russell 2000 index and Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon if each index closes at or above its 75% coupon threshold level on the observation date for that quarter. The contingent coupon rate will be 8% for the first five years and 14% for the last five years.
The notes will be callable at par on any contingent coupon payment date after one year.
The payout at maturity will be par unless any index finishes below its 50% downside threshold level, in which case the payout will be par plus the return of the worst performing index 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 – callable with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500, Russell 2000, Euro Stoxx 50
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| Amount: | $1,137,000
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| Maturity: | Oct. 29, 2027
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| Coupon: | 8% for years one through five, 14% for years six through 10; payable each quarter that each index closes at or above coupon threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any index falls by more than 50%, in which case par plus return of worst performing index
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| Call option: | At par on any contingent coupon payment date after one year
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| Initial levels: | 2,560.40 for S&P, 1,497.459 for Russell, 3,637.20 for Euro Stoxx
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| Coupon thresholds: | 1,920.30 for S&P, 1,123.09425 for Russell, 2,727.90 for Euro Stoxx; 75% of initial levels
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| Downside thresholds: | 1,280.20 for S&P, 748.7295 for Russell, 1,818.60 for Euro Stoxx; 50% of initial levels
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| Pricing date: | Oct. 26
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| Settlement date: | Oct. 31
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4.4%
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| Cusip: | 95000E3Q0
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