Wells Fargo plans to price certificates of deposit linked to CMS rates

By Angela McDaniels

Tacoma, Wash., July 27 - Wells Fargo Bank, NA plans to price certificates of deposit due Aug. 18, 2019 linked to the 30-year and two-year Constant Maturity Swap rates, according to a term sheet.

The CDs will carry a fixed interest rate of 8.25% for the first year. After that, the interest rate will equal four times the spread of the 30-year CMS rate over the two-year CMS rate, with a floor of zero and a cap of 10% per year for each interest period. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning Feb. 18, 2010, the CDs will be callable at par on any interest payment date.

The CDs will price Aug. 11 and settle Aug. 18.

Incapital is the distributor.

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