By Jennifer Chiou
New York, Aug. 15 - Wells Fargo & Co. priced $31,007,080 of 8% equity-linked securities due Aug. 6, 2014 linked to the common stock of Halliburton Co.., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The face amount of each security is equal to the initial share price.
The payout at maturity will be, at the issuer's option, a number of Halliburton shares equal to the settlement amount divided by the final share price or an amount in cash equal to the settlement amount.
If the final share price is greater than the upside participation threshold, the settlement amount will be par plus (a) the 65% upside participation rate multiplied by the result of (b) the final share price minus the $53.2752 upside participation threshold. The upside participation threshold will be greater than the initial share price, and the upside participation rate will be less than 100%.
If the final share price is greater than or equal to the principal return threshold and less than or equal to the upside participation threshold, the settlement amount will be par. The $52.1068 principal return threshold is greater than the initial share price but less than the upside participation threshold.
If the final share price is less than the principal return threshold, the settlement amount will be the 0.8969 downside exchange ratio multiplied by the final share price, provided that the payout will not be less than the $35.6258 minimum repayment amount. The downside exchange ratio is the initial share price divided by the principal return threshold.
Wells Fargo Securities, LLC is the underwriter.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Equity-linked securities
|
| Underlying stock: | Halliburton Co. (Symbol: HAL)
|
| Amount: | $31,007,080.10
|
| Maturity: | Aug. 6, 2014
|
| Coupon: | 8%, payable monthly
|
| Price: | Par of $46.7326
|
| Payout at maturity: | Par plus 0.65 times the difference of the final stock price and the $53.2752 upside participation threshold if stock closes at or greater than the upside participation threshold; par if the final share price is greater than or equal to the $52.1068 principal return threshold and less than or equal to the upside participation threshold, the settlement amount will be par; 0.8969 downside exchange ratio multiplied by the final share price if final share price is less than the principal return threshold, subject to $35.6258 minimum repayment amount
|
| Initial share price: | $46.7326
|
| Principal return threshold: | $52.1068, 111.5% of initial price
|
| Upside participation threshold: | $53.2752, 114% of initial price
|
| Pricing date: | Aug. 14
|
| Settlement date: | Aug. 21
|
| Underwriter: | Wells Fargo Securities, LLC
|
| Fees: | None
|
| Cusip: | 949746515
|
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