Wells Fargo Bank to price 10-year callable CDs linked to CMS rates

By Angela McDaniels

Tacoma, Wash., Feb. 23 - Wells Fargo Bank, NA plans to price certificates of deposit due March 19, 2020 linked to the performance of a yield curve, according to a term sheet.

The interest rate will be 7% for the first year. After that time, the rate will be four times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate minus 25 basis points, subject to a floor of zero and a cap of 7% per year in each interest period. Interest is payable quarterly.

The payout at maturity will be par.

Beginning March 19, 2012, the CDs are callable at par on any interest payment date.

The CDs will price March 12 and settle March 19.

Incapital LLC is the distributor.

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