By Jennifer Chiou
New York, June 27 - Wells Fargo & Co. priced another $11,358,000 of 0% optionally exchangeable securities due June 10, 2020 exchangeable for the common stock of International Paper Co., adding to the original $28.9 million, according to a 424B2 filing with the Securities and Exchange Commission.
The total issue amount is $40,258,000.
Beginning on July 19, each security will be exchangeable at any time at the option of its holder for 16.316 International Paper shares. The issuer can settle exchanges in International Paper stock or cash.
Beginning on June 10, 2018, the securities will be callable at any time. The redemption price is the greater of par and parity.
Parity on any day equals the exchange ratio multiplied by the closing share price. Parity on the pricing date was $743.49. The exchange ratio, 16.316, is equal to $743.39 divided by the initial share price.
The payout at maturity will be the greater of par and parity.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Optionally exchangeable securities
|
| Underlying stock: | International Paper Co. (NYSE: IP)
|
| Amount: | $40,258,000 (up from original $28.9 million)
|
| Maturity: | June 10, 2020
|
| Coupon: | 0%
|
| Price: | Par for original $28.9 million; 97.34 for add-on
|
| Payout at maturity: | Greater of par and parity, which on any day equals 16.316 multiplied by closing share price
|
| Exchange option: | For 16.316 International Paper shares per note beginning July 19
|
| Call option: | At greater of par and parity beginning June 10, 2018
|
| Initial share price: | $45.5679, which is based on an intra-day price of stock on pricing date
|
| Pricing date: | June 10 for original $28.9 million; June 25 for reopened notes
|
| Settlement date: | June 17 for original $28.9 million; June 28 for reopened notes
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | Par offering price includes up to 2.153% for structuring and development costs
|
| Cusip: | 94986RQH7
|
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