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

By Marisa Wong

Madison, Wis., June 6 - Wells Fargo Bank, NA plans to price contingent annual interest market-linked certificates of deposit due June 30, 2015 linked to an equally weighted basket of commodities and a commodity index, according to a term sheet.

The underlying index is the S&P GSCI Brent Crude Oil Index Excess Return, and the commodities are natural gas, copper, corn, cotton, gasoline, nickel, palladium, silver and sugar.

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 8% to 11% 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: 949748H42) are expected to price on June 24 and settle on June 30.

Incapital LLC is the distributor.

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