Wells Fargo plans notes with contingent downside linked to energy ETF

By Angela McDaniels

Tacoma, Wash., Oct. 20 – Wells Fargo & Co. plans to price 0% market-linked securities with upside participation and contingent downside due Nov. 2, 2018 linked to the Energy Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the fund’s return is greater than zero, the payout at maturity will be par plus 125% of the fund’s return. If the fund’s final share price is less than or equal to the initial share price but greater than or equal to the threshold price, the payout will be par. If the final share price is less than the threshold price, investors will be fully exposed to the fund’s decline from its initial share price.

The threshold price is expected to be 69% to 73% of the initial share price and will be set at pricing.

Wells Fargo Securities LLC is the agent.

The notes will price Oct. 30 and settle Nov. 4.

The Cusip number is 94986RZS3.

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