Published on 6/9/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $1.64 million market-linked callable notes on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, June 9 – Wells Fargo & Co. priced $1.64 million of 0% market-linked securities – callable with contingent coupon and contingent downside due June 11, 2027 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate if each index closes at or above its coupon threshold, 70% of its initial level, on an observation date for that quarter. The annual rate will be 7% for the first five years and 11% in years six through 10.
The notes are callable at par on any optional redemption date.
The payout at maturity will be par unless either index finishes below its 50% downside threshold level, in which case the payout will be par plus the return of the worse performing index with full exposure to any losses.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| 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: | $1,642,000
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| Maturity: | June 11, 2027
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| Coupon: | Payable quarterly at annual rate of 7% for first five years and 11% thereafter if each index closes at or above its 70% coupon threshold on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either index closes below 50% downside threshold, in which case full exposure to any losses of worse performing index
|
| Initial levels: | 2,433.14 for S&P, 1,396.674 for Russell
|
| Coupon thresholds: | 1,703.189 for S&P, 977.6718 for Russell; 70% of initial levels
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| Downside thresholds: | 1,216.57 for S&P, 698.337 for Russell; 50% of initial levels
|
| Call option: | At par on any optional redemption date
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| Pricing date: | June 7
|
| Settlement date: | June 9
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | 3.25%
|
| Cusip: | 94986R6V8
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