Published on 10/31/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $137,000 callable contingent coupon notes on SPDR funds
By Sarah Lizee
Olympia, Wash., Oct. 31 – Wells Fargo & Co. priced $137,000 of market-linked securities due Oct. 31, 2022 – callable with contingent coupon and contingent downside linked to the lowest performing of the Energy Select Sector SPDR fund, the Consumer Discretionary Select Sector SPDR fund, the Financial Select Sector SPDR fund and the Technology Select Sector SPDR fund according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 6.45% if each fund closes at or above its 60% 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 fund finishes below its 60% downside threshold, in which case the payout will be par plus the return with full exposure to any losses to the worst performing fund.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Market linked securities – callable with contingent coupon and contingent downside
|
| Underlying funds: | Energy Select Sector SPDR fund, the Consumer Discretionary Select Sector SPDR fund, the Financial Select Sector SPDR fund and the Technology Select Sector SPDR fund
|
| Amount: | $137,000
|
| Maturity: | Oct. 31, 2022
|
| Coupon: | 6.45% annualized, payable quarterly if each fund closes at or above 60% coupon threshold on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any fund falls by more than 40%, in which case 1% loss per 1% decline of worst performing fund
|
| Call: | Callable at par on any payment date after six months
|
| Initial levels: | $66.48 for Energy Select, $103.41 for Consumer, $25.26 for Financial Select, $68.09 for Technology Select
|
| Downside thresholds: | $39.888 for Energy Select, $62.046 for Consumer, $15.156 for Financial Select, $40.854 for Technology Select, 60% of initial levels
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 31
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | 4.85%
|
| Cusip: | 95001BA95
|
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