Published on 2/1/2019 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $2.50 million market-linked autocallables on three indexes
By Marisa Wong
Morgantown, W.Va., Feb. 1 – Wells Fargo Finance LLC priced $2,495,000 of market-linked securities – autocallable with contingent coupon and contingent downside – due Feb. 4, 2027 linked to the lesser performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Wells Fargo & Co.
Each quarter, the notes will pay a contingent coupon at an annual rate of 7.4% if each index closes at or above its 70% coupon threshold level on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date beginning February 2020.
The payout at maturity will be par unless any index finishes below its 50% downside threshold level, in which case investors will lose 1% for every 1% decline of the least performing index.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo Finance LLC
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| Guarantor: | Wells Fargo & Co.
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| Issue: | Market-linked securities – autocallable with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500, Russell 2000, Euro Stoxx 50
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| Amount: | $2,495,000
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| Maturity: | Feb. 4, 2027
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| Coupon: | 7.4%, payable each quarter that each index closes at or above threshold level on observation date for that quarter
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| Price: | Par
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| Call: | At par if each index closes at or above its initial level on any quarterly observation date beginning February 2020
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| Payout at maturity: | Par unless any index finishes below its downside threshold level, in which case 1% loss for every 1% decline of the least performing index
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| Initial levels: | 2,664.76 for S&P, 1,482.853 for Russell, 3,163.24 for Stoxx
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| Coupon thresholds: | 1,865.332 for S&P, 1,037.9971 for Russell, 2,214.268 for Stoxx; 70% of initial levels
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| Downside thresholds: | 1,332.38 for S&P, 741.4265 for Russell, 1,581.62 for Stoxx; 50% of initial levels
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| Pricing date: | Jan. 25
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| Settlement date: | Jan. 30
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 2.075%
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| Cusip: | 95001H2D2
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