Published on 3/6/2020 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $651,000 callable contingent market-linked on three indexes
By Wendy Van Sickle
Columbus, Ohio, March 6 – Wells Fargo Finance LLC priced $651,000 of market-linked securities due Nov. 30, 2023 – callable with contingent coupon and contingent downside linked to the least performing of the Nasdaq-100 index, Dow Jones industrial average and Russell 2000 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 9.2% contingent quarterly coupon at an annual rate if each index closes at or above its 70% coupon threshold on the observation date for that quarter.
The notes will be callable at par plus any coupon due on any quarterly calculation date after six months.
The payout at maturity will be par unless either index finishes below its 70% downside threshold, in which case the payout will be par plus the return of the worse performing index with full exposure to any losses.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo Finance LLC
|
| 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: | Nasdaq-100 index, Dow Jones industrial average and Russell 2000 index
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| Amount: | $651,000
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| Maturity: | Nov. 30, 2023
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| Coupon: | 9.2% per year, if each index closes at or above coupon threshold on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par unless either index falls by more than downside threshold, in which case 1% loss per 1% decline of worse performing index
|
| Call option: | Par plus the coupon on any quarterly calculation date after six months
|
| Initial levels: | 8,436.666 for Nasdaq, 1,497.87 for Russell, 25,766.64 for Dow
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| Coupon thresholds: | 5,905.6662 for Nasdaq, 1,048.509 for Russell, 18,036.648 for Dow; 70% of initial levels
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| Downside thresholds: | 5,905.6662 for Nasdaq, 1,048.509 for Russell, 18,036.648 for Dow; 70% of initial levels
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| Pricing date: | Feb. 27
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| Settlement date: | March 3
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 0.875%
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| Cusip: | 95001HEY3
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