Published on 10/2/2019 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $242,000 contingent market-linked notes on ETFs
By Wendy Van Sickle
Columbus, Ohio, Oct. 2 – Wells Fargo Finance LLC priced $242,000 of market-linked securities with contingent coupon and contingent downside due Oct. 4, 2024 linked to the SPDR S&P Oil & Gas Exploration & Production ETF and the VanEck Vectors Gold Miners ETF, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon of 11.75% a year if each ETF closes above its threshold price, 60% of its initial price, on the observation date for that quarter.
The notes are guaranteed by Wells Fargo & Co.
If the final return of the least performing ETF is flat, positive, or negative by up to 40%, the payout at maturity will be par plus the coupon.
If either ETF declines by more than 40%, the payout will be par plus the return of the least performing ETF with full exposure to the loss.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Wells Fargo Finance LLC
|
| Guarantor: | Wells Fargo & Co.
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| Issue: | Market-linked securities with contingent coupon and contingent downside
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| Underlying ETFs: | SPDR S&P Oil & Gas Exploration & Production ETF, VanEck Vectors Gold Miners ETF
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| Amount: | $242,000
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| Maturity: | Oct. 4, 2024
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| Coupon: | 11.75%, payable quarterly if each ETF closes above threshold price on related observation date
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| Price: | Par
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| Payout at maturity: | If the final return of the least performing ETF is flat, positive, or negative by up to 40%, par plus coupon; if either ETF declines by more than 40%, par plus the return of the least performing ETF with full exposure to the loss
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| Initial levels: | $23.08 for oil ETF, $28.43 for Gold Miners
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| Threshold price: | $13.848 for oil ETF, $17.058 for Gold Miners
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| Pricing date: | Sept. 25
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| Settlement date: | Sept. 30
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| Agents: | Wells Fargo Securities, LLC
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| Fees: | 3%
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| Cusip: | 95001HAG6
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