Wells Fargo plans 0% enhanced return notes with cap on SPDR S&P Bank

By Devika Patel

Knoxville, Tenn., Dec. 17 – Wells Fargo & Co. plans to price 0% autocallable securities with buffered downside exposure linked to the SPDR S&P Bank exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are expected to mature between 36 and 39 months after issue, with the exact maturity to be set at pricing.

The notes will be automatically called at par plus a premium if the fund closes at or above its initial level on any of the two observation dates.

The premium for the first call date, which is expected to be 13 months after pricing, will fall between 7.15% and 8.324%, or $1,071.50 to $1,083.42 per $1,000 note.

The premium for the second call date, which is expected to be 24 months after pricing, will fall between 13.2% and 15.4%, or $1,132 to $1,154 per $1,000 note.

The actual call observation dates and call premiums will be set at pricing.

The payout at maturity will be par plus a premium of 19.8% to 23%, or $1,198.00 to $1,231 per $1,000 note, if the fund finishes at or above its initial level. Investors will receive par if the fund falls by 5% or less, and will otherwise be exposed to any declines beyond 5%.

The exact deal terms will be set at pricing.

Wells Fargo Securities, LLC is the agent.

The notes (Cusip: 94986RC33) will price and settle in December.

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