Published on 4/4/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $9.84 million of market-linked notes tied to indexes
By Devika Patel
Knoxville, Tenn., April 4 – Wells Fargo & Co. priced $9,841,000 of market-linked securities due April 4, 2019 – autocallable with contingent coupon and contingent downside linked to the lesser performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 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 9% if each index closes at or above its threshold level, 75% of its initial level, on the observation date for that quarter.
The notes will be callable quarterly at par after one year.
The payout at maturity will be par unless either index finishes below its 75% threshold level, in which case investors will lose 1% for each 1% decline of the worst-performing index from its initial level.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any of the quarterly determination dates from September 2017 to December 2018, inclusive.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
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| Issue: | Market-linked securities – autocallable with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $9,841,000
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| Maturity: | April 4, 2019
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| Coupon: | 9%, 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 1% loss for each 1% decline of lesser-performing index from initial level
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| Call: | At par plus contingent payment if each index closes at or above initial level on any of the quarterly determination dates from September 2017 to December 2018, inclusive
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| Initial levels: | 2,368.06 for S&P, 1,382.345 for Russell, 3,481.58 for Stoxx
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| Threshold levels: | 1,776.045 for S&P, 1,036.75875 for Russell, 2,611.185 for Stoxx; 75% of initial levels
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| Pricing date: | March 30
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| Settlement date: | April 4
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 1.325%
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| Cusip: | 94986R4Y4
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