Wells Fargo plans contingent coupon notes linked to Russell, S&P 500

By Angela McDaniels

Tacoma, Wash., May 3 – Wells Fargo & Co. plans to price callable market-linked securities with contingent coupon and contingent downside due June 1, 2021 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each index closes at or above its threshold level, 50% of its initial level, on the calculation day for that quarter. The contingent coupon rate is expected to be at least 5% per year and will be set at pricing.

If each index’s final level is greater than or equal to its threshold level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for every 1% that the final level of the worse-performing index is less than its initial index level.

After six months, the notes will be callable quarterly at par.

Wells Fargo Securities LLC is the agent.

The notes will price May 25.

The Cusip number is 94986RM32.

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