By Angela McDaniels
Tacoma, Wash., April 4 - Wells Fargo & Co. priced $25 million of additional 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.
The $22.12 million principal amount of additional notes priced at 113.03, or $52.8217 per $46.7326 principal amount of notes, for $25 million of proceeds. The price includes accrued interest from April 6.
Previously, the company priced $31.01 million principal amount at par and $7.01 million principal amount at 108.8. The total issue size is now $60.14 million principal amount.
The face amount of each note, $46.7326, is equal to the initial share price.
Interest is payable monthly.
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 determination price or an amount in cash equal to the settlement amount.
The final determination price will be the final share price multiplied by the share amount, which is subject to adjustment in the event of certain corporate events. The share amount was 1 on the pricing date of the original notes, 1.00048 on the pricing date of the first add-on and 1.00092 on the pricing date of the second add-on.
If the final determination price is greater than the upside participation threshold, 114% of the initial share price, the settlement amount will be par plus 0.65% for every 1% that the final determination price exceeds the upside participation threshold.
If the final determination price is greater than or equal to the principal return threshold, 111.5% of the initial share price, and less than or equal to the upside participation threshold, the settlement amount will be par.
If the final determination price is less than principal return threshold, the settlement amount will be 0.8969 times the final determination price, subject to a minimum payout of $35.6258.
Wells Fargo Securities, LLC is the underwriter.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Equity-linked securities
|
| Underlying stock: | Halliburton Co. (Symbol: HAL)
|
| Amount: | $60,135,509.68, increased from $31,007,080.10
|
| Maturity: | Aug. 6, 2014
|
| Coupon: | 8%, payable monthly
|
| Price: | Par of $46.7326 for $31,007,080.10, $50.845 for $7,009,890, $52.8217 for $22,118,539.58
|
| Payout at maturity: | At issuer's option, number of Halliburton shares equal to settlement amount divided by final determination price or amount in cash equal to settlement amount
|
| Settlement amount: | If final determination price is greater than upside participation threshold, par plus 0.65% for every 1% that final determination price exceeds upside participation threshold; if final determination price is greater than or equal to principal return threshold and less than or equal to upside participation threshold, par; if final determination price is less than principal return threshold, 0.8969 times final determination price, subject to minimum payout of $35.6258.
|
| Initial share price: | $46.7326
|
| Principal return threshold: | $52.1068, 111.5% of initial share price
|
| Upside participation threshold: | $53.2752, 114% of initial share price
|
| Pricing dates: | Aug. 14, 2013 for original issue; Feb. 21 for first add-on; April 2 for second add-on
|
| Settlement dates: | Aug. 21, 2013 for original issue; Feb. 26 for first add-on; April 8 for second add-on
|
| Underwriter: | Wells Fargo Securities, LLC
|
| Fees: | None
|
| Cusip: | 949746515
|
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