Wells Fargo plans contingent coupon notes linked to Russell 2000

By Angela McDaniels

Tacoma, Wash., May 3 – Wells Fargo & Co. plans to price market-linked securities with contingent coupon and contingent downside due May 26, 2022 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if the index closes at or above its threshold level, 70% of its initial level, on the calculation day for that quarter. The contingent coupon rate is expected to be 6.1% to 6.5% per year and will be set at pricing.

If the 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 index level is less than the initial index level.

Wells Fargo Securities LLC is the agent.

The notes will price May 20.

The Cusip number is 94986RM24.

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