Wells Fargo to price mandatorily exchangeable securities tied to Ford

By Toni Weeks

San Diego, July 30 - Wells Fargo & Co. plans to price mandatorily exchangeable securities with capped upside and contingent buffered downside due 2014 linked to the common stock of Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable quarterly. The coupon will be set at pricing.

A trigger event will occur if the closing price of Ford stock is less than or equal to the contingent price - expected to be 70% of the initial price - during the life of the notes.

If the final share price is greater than or equal to the initial share price, the payout at maturity will be par plus the stock return, subject to a maximum payment of $1,300 per $1,000 principal amount.

If the final share price is less than the initial price and a trigger event has not occurred, investors will receive par. If the stock return is negative and a trigger event has occurred, investors will share in those losses.

Wells Fargo Securities, LLC will act as agent.

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