Published on 1/25/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $5 million market-linked notes on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Jan. 25 – Wells Fargo & Co. priced $5 million of market-linked securities due July 30, 2018 – callable with contingent coupon and contingent downside linked to the lesser performing of the S&P 500 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 7.4% if each index closes at or above its threshold level, 70% of its initial level, on the observation date for that quarter.
The notes will be callable quarterly at par after six months.
The payout at maturity will be par unless either index finishes below its threshold level, in which case the payout will be par plus the return of the lesser-performing index with full exposure to any losses.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
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| Issue: | Market-linked securities – callable with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500, Russell 2000
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| Amount: | $5 million
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| Maturity: | July 30, 2018
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| Coupon: | 7.4%, payable quarterly if each index closes at or 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: | 2,261.375 for S&P, 1,343.525 for Russell
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| Threshold levels: | 1,582.9625 for S&P, 940.4675 for Russell; 70% of initial levels
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| Call option: | After six months, quarterly at par
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| Pricing date: | Jan. 23
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| Settlement date: | Jan. 30
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| Agent: | Wells Fargo Securities LLC
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| Fees: | None
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| Cusip: | 94986R3Y5
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