Published on 2/21/2020 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $795,000 callable market-linked contingent notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 21 – Wells Fargo Finance LLC priced $795,000 of market-linked securities due Nov. 30, 2023 – callable with contingent coupon and contingent downside linked to the least performing of the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Wells Fargo & Co.
The notes will pay a contingent quarterly coupon if each index closes at or above its 75% coupon threshold on the observation date for that period. The coupon will be 6% per year.
Wells Fargo may call the notes in whole at par quarterly after six months.
The payout at maturity will be par unless any index finishes below its 70% downside threshold, in which case the payout will be par plus the return of the worst performing index with full exposure to any losses.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo Finance LLC
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| Guarantor: | Wells Fargo & Co.
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| Issue: | Market linked securities – callable with contingent coupon and contingent downside
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index
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| Amount: | $795,000
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| Maturity: | Nov. 30, 2023
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| Coupon: | 6% per year, payable quarterly if each index closes at or above coupon threshold on observation date for that period
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| Price: | Par
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| Payout at maturity: | Par unless any index falls by more than 40%, in which case 1% loss per 1% decline of worst performing index
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| Call: | In whole at par quarterly after six months
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| Initial levels: | 29,348.03 for Dow, 1,692.573 for Russell, 9,718.727 for Nasdaq
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| Coupon thresholds: | 22,011.0225 for Dow, 1,269.42975 for Russell, 7,289.04525 for Nasdaq, 75% of initial levels
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| Downside thresholds: | 20,543.621 for Dow, 1,184.8011 for Russell, 6,803.1089 for Nasdaq, 70% of initial levels
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| Pricing date: | Feb. 19
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| Settlement date: | Feb. 24
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 3%
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| Cusip: | 95001HF97
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