Wells Fargo Bank plans 12-year CDs tied to 10-, two-year CMS rates

By Marisa Wong

Milwaukee, June 21 - Wells Fargo Bank, NA plans to price certificates of deposit due June 30, 2022 linked to the spread of the 10-year dollar Constant Maturity Swap rate over the two-year dollar CMS rate, according to a term sheet.

Interest for the first year will be 8%. After that, the rate will be four times the spread of the 10-year CMS rate over the two-year CMS rate minus 25 basis points, with a floor of 0% and a cap of 8%. Interest is payable quarterly.

The payout at maturity will be par.

The CDs are callable on any interest payment date beginning June 30, 2013.

The CDs (Cusip: 949748ZB6) will price on June 23 and settle on June 30.

Incapital LLC is the distributor.

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