Wells Fargo plans contingent annual interest CDs on commodity basket

By Toni Weeks

San Diego, Nov. 2 - Wells Fargo Bank, NA plans to price contingent annual interest market-linked certificates of deposit due Nov. 24, 2017 linked to a basket of eight commodities and two commodity indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The equally weighted basket includes copper, corn, cotton, natural gas, nickel, palladium, silver, sugar, the S&P GSCI Brent Crude Oil Index Excess Return and the S&P GSCI Livestock Index Excess Return.

In November of each year, the CDs will pay a coupon equal to the sum of the basket components' weighted returns, with a floor of zero. On any valuation date, if an individual component's performance has remained the same or appreciated, it will be given a fixed return of 7% to 9% that will be set at pricing. If a commodity's return has declined, its component return will equal the commodity return, subject to a floor of negative 20%.

The payout at maturity will be par.

The CDs (Cusip: 949748L70) are expected to price Nov. 23 and settle Nov. 29.

The distributor is Incapital LLC.

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