Wells Fargo to price five-year market-linked CDs tied to commodities

By Marisa Wong

Madison, Wis., Feb. 2 - Wells Fargo Bank, NA plans to price contingent annual interest market-linked certificates of deposit due Feb. 29, 2016 based on a basket of equally weighted commodities and commodity indexes, according to a term sheet.

The underlying indexes are the S&P GSCI Crude Oil Index Excess Return, S&P GSCI Wheat Index Excess Return and S&P GSCI Livestock Index Excess Return, and the commodities are gasoline, sugar, soybeans, zinc, gold, platinum and nickel.

The coupon for each interest period will be equal to the sum of the weighted basket component returns. If an underlying index or commodity's return is zero or positive, its component return will equal a fixed return of 11% to 14% that will be set at pricing. Otherwise, the basket component return will equal the underlying return, subject to a floor of negative 20%. Interest is payable annually and cannot be less than zero.

The payout at maturity will be par.

The CDs (Cusip: 949748B89) are expected to price on Feb. 22 and settle on Feb. 28.

Incapital LLC is the distributor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.