Published on 3/2/2020 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $5 million callable market-linked contingent notes on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, March 2 – Wells Fargo Finance LLC priced $5 million of market-linked securities due March 30, 2021 – callable with contingent coupon and contingent downside linked to the least performing of the Russell 2000 index and the S&P 500 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 monthly coupon if each index closes at or above its 70% coupon threshold on the observation date for that period. The coupon will be 7.8% per year.
Wells Fargo may call the notes in whole at par monthly 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: | Russell 2000 index and S&P 500 index
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| Amount: | $5 million
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| Maturity: | March 30, 2021
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| Coupon: | 7.8% per year, payable monthly 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 30%, in which case 1% loss per 1% decline of worst performing index
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| Call: | In whole at par monthly after six months
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| Initial levels: | 1,627.6 for Russell, 3,234.65 for S&P
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| Coupon thresholds: | 1,139.32 for Russell, 2,264.255 for S&P, 70% of initial levels
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| Downside thresholds: | 1,139.32 for Russell, 2,264.255 for S&P, 70% of initial levels
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| Pricing date: | Feb. 25
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| Settlement date: | Feb. 28
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 0%
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| Cusip: | 95001HFR7
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