Published on 7/28/2016 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $2.6 million contingent coupon autocallables on Stoxx, Russell
By Wendy Van Sickle
Columbus, Ohio, July 28 – Wells Fargo & Co. priced $2.6 million of 0% market-linked autocallable securities with contingent coupon and contingent downside due July 31, 2026 linked to the lesser performing of the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7.7% if each index closes above its 60% threshold level on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes above its initial level on any interest payment date after one year.
The payout at maturity will be par plus the final coupon unless either index closes below the threshold level, in which case investors will be fully exposed to any losses of the lesser performing index.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Wells Fargo & Co.
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| Issue: | Market-linked securities – autocallable contingent coupon and contingent downside
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| Underlying indexes: | Euro Stoxx 50 and Russell 2000
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| Amount: | $2.6 million
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| Maturity: | July 31, 2026
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| Coupon: | 7.7%, payable quarterly if each index closes above its threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either index closes below threshold, in which case full exposure to any losses of lesser performing index
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| Initial levels: | 2,978.90 for Stoxx, 1,216.859 for Russell
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| Threshold: | 1,787.34 for Stoxx, 730.1154 for Russell, 60% of initial levels
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| Call: | At par plus contingent coupon if each index closes above initial level on any coupon payment date after one year
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| Pricing date: | July 26
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| Settlement date: | July 29
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4.15%
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| Cusip: | 94986RR94
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