Published on 9/27/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $50 million contingent market-linked callables on five tech stocks
By Wendy Van Sickle
Columbus, Ohio, Sept. 27 – Wells Fargo & Co. priced $50 million of market-linked securities due Sept. 30, 2021 – callable with contingent coupon and contingent downside linked to the lowest performing of the class A common stocks of Alphabet Inc. and Facebook, Inc. and the common stocks of Amazon.com, Inc., Apple Inc. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 20.7% if each stock closes at or above its 70% coupon threshold on the observation date for that quarter.
The notes will be callable at par on any payment date after six months.
The payout at maturity will be par unless any stock finishes below its 70% downside threshold, in which case the payout will be par plus the return with full exposure to any losses to the worst performing stock.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
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| Issue: | Market linked securities – callable with contingent coupon and contingent downside
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| Underlying stocks: | Amazon.com, Inc., Alphabet Inc., Facebook, Inc., Apple Inc., Microsoft Corp.
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| Amount: | $50 million
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| Maturity: | Sept. 30, 2021
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| Coupon: | 20.7% annualized, payable quarterly if each stock closes at or above 70% coupon threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any stock falls by more than 30%, in which case 1% loss per 1% decline of worst performing stock
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| Call: | Callable at par on any payment date after six months
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| Initial levels: | $1,934.36 for Amazon, $114.67 for Microsoft, $220.79 for Apple, $1,179.56 for Alphabet and $165.41 for Facebook
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| Downside thresholds: | $1,354.052 for Amazon, $80.269 for Microsoft, $154.553 for Apple, $825.692 for Alphabet and $115.787 for Facebook, 70% of initial levels
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| Pricing date: | Sept. 24
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| Settlement date: | Oct. 1
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 0.6%
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| Cusip: | 95001BA46
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