Wells Fargo plans contingent interest CDs linked to commodity basket

By Angela McDaniels

Tacoma, Wash., Oct. 6 - Wells Fargo Bank, NA plans to price contingent annual interest market-linked certificates of deposit due Oct. 30, 2015 linked to a commodity basket, according to a term sheet.

The equally weighted basket includes the S&P GSCI Crude Oil Index Excess Return, gasoline, sugar, soybeans, S&P GSCI Wheat Index Excess Return, S&P GSCI Livestock Index Excess Return, zinc, gold, platinum and nickel.

In October of each year, the CDs will pay a coupon equal to the sum of the basket components' weighted returns, with a floor of zero. The return of each basket commodity will be subject to a floor of negative 20% and a cap of 9% to 12% that will be set at pricing.

The payout at maturity will be par.

The CDs (Cusip 949748ZY6) are expected to price Oct. 22 and settle Oct. 29.

Incapital LLC is the distributor.

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