Wells Fargo plans contingent coupon autocallables linked to Ford, GM

By Angela McDaniels

Tacoma, Wash., Nov. 6 – Wells Fargo & Co. plans to price autocallable market-linked securities with contingent coupon and contingent downside due Nov. 13, 2024 linked to the lesser performing of the common stocks of Ford Motor Co. and General Motors Co., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each stock closes at or above its threshold price, 60% of its initial share price, on the calculation day for that quarter. The contingent coupon rate is expected to be at least 10% per year and will be set at pricing.

Beginning in November 2018, the notes will be automatically called at par if the lesser-performing stock closes at or above its initial share price on any quarterly calculation date.

If each stock’s final share price is greater than or equal to its threshold price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price of the lesser-performing stock is less than its initial share price.

Wells Fargo Securities LLC is the agent.

The notes will price Nov. 7.

The Cusip number is 95000E4D8.

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