Wells Fargo plans contingent annual interest CDs linked to 20 stocks

By Marisa Wong

Madison, Wis., Dec. 6 - Wells Fargo Bank, NA plans to price contingent annual interest certificates of deposit due Dec. 29, 2017 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket includes Amazon.com, Inc., American Express Co., Apple Inc., AT&T Inc., Bristol-Myers Squibb Co., CenturyLink, Inc., Dow Chemical Co., Exelon Corp., General Electric Co., General Mills, Inc., Home Depot, Inc., Johnson & Johnson, JPMorgan Chase & Co., Microsoft Corp., Monsanto Co., Newmont Mining Corp., Occidental Petroleum Corp., Procter & Gamble Co., Schlumberger NV and United Parcel Service, Inc.

In December of each year, the CDs will pay a coupon equal to the sum of the stocks' weighted component returns, subject to a floor of zero. If a stock's underlying return is greater than zero, its component return will be fixed at 6% to 9%. Otherwise, its component return will be the greater of its underlying return and negative 30%.

The exact fixed component return will be set at pricing.

The payout at maturity will be par.

The CDs (Cusip: 949748M38) are expected to price Dec. 23 and settle Dec. 29.

Incapital LLC is the distributor.

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