Published on 9/20/2016 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $800,000 contingent coupon notes linked to Russell 2000, S&P 500
By Angela McDaniels
Tacoma, Wash., Sept. 20 – Wells Fargo & Co. priced $800,000 of callable market-linked securities with contingent coupon and contingent downside due Sept. 22, 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 pay a contingent coupon at the rate of 6.8% per year if each index closes at or above its threshold level, 60% of its initial level, on the calculation day for that quarter.
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 one year, the notes will be callable quarterly at par.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Callable market-linked securities with contingent coupon and contingent downside
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $800,000
|
| Maturity: | Sept. 22, 2021
|
| Coupon: | 6.8% per year, payable quarterly if each index closes at or above threshold level on calculation day for that quarter
|
| Price: | Par
|
| Payout at maturity: | If both indexes finish at or above threshold levels, par; otherwise, 1% loss for every 1% that worse-performing index’s final level is less than initial level
|
| Call option: | Beginning in September 2017, notes will be callable quarterly at par
|
| Initial index levels: | 2,139.16 for S&P 500 and 1,224.779 for Russell 2000
|
| Threshold levels: | 1,283.496 for S&P 500 and 734.8674 for Russell 2000; 60% of initial level
|
| Pricing date: | Sept. 16
|
| Settlement date: | Sept. 21
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | 0.7%
|
| Cusip: | 94986RW72
|
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