Wells Fargo plans variable annual interest CDs linked to five stocks

By Marisa Wong

Morgantown, W.Va., Sept. 19 – Wells Fargo Bank, NA plans to price variable annual interest certificates of deposit due Sept. 29, 2023 linked to a basket of five stocks, according to a term sheet.

The underlying companies are Apple Inc., AT&T Inc., Bristol-Myers Squibb Co., Cisco Systems, Inc. and Nike, Inc.

The CDs will pay an annual coupon at either the higher interest rate of 4% to 4.5% per year or the lower interest rate of 0.75% per year. The exact higher interest rate will be set at pricing.

If each underlying stock closes at or above its initial price on an annual valuation date, the coupon will be the higher rate for that year. Otherwise, the coupon will be the lower rate.

The payout at maturity will be par plus the final coupon.

Incapital LLC is the distributor.

The CDs will price on Sept. 27 and settle on Sept. 29.

The Cusip number is 94986TC54.

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