Wells Fargo plans contingent coupon autocallables on financial fund

By Angela McDaniels

Tacoma, Wash., Dec. 9 – Wells Fargo & Co. plans to price 0% autocallable market-linked securities with fixed percentage buffered downside due Jan. 6, 2020 linked to the Financial Select Sector SPDR Fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called at par plus a premium if the fund’s closing share price on Jan. 4, 2018, Jan. 4, 2019 or Dec. 27, 2019 is greater than or equal to the initial share price. The call premium is expected to be 6.5% to 7.5% per year and will be set at pricing.

If the notes are not called and the final share price is greater than or equal to the threshold price, 90% of the initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the fund declines beyond 10%.

Wells Fargo Securities LLC is the agent.

The notes will price Dec. 29.

The Cusip number is 94986R2T7.

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