Published on 7/7/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $3 million market-linked callable notes on S&P, Russell
By Devika Patel
Knoxville, Tenn., July 7 – Wells Fargo & Co. priced $3 million of 0% market-linked securities – callable with contingent coupon and contingent downside due June 27, 2019 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 monthly coupon at an annual rate of 7.05% if each index closes at or above its threshold level, 70% of its initial level, on an observation date for that month.
The notes are callable in whole but not in part at par on any monthly coupon payment date from Dec. 21 2017 to May 21, 2019.
The payout at maturity will be par unless either index finishes below its 70% threshold level, in which case investors will lose 1% for each 1% decline of the worse performing index from its initial level.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Market-linked securities – callable with contingent coupon and contingent downside
|
| Underlying indexes: | S&P 500, Russell 2000
|
| Amount: | $3 million
|
| Maturity: | June 27, 2019
|
| Coupon: | Payable monthly at annual rate of 7.05% if each index closes at or above its 70% threshold level on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless either index closes below 70% threshold level, in which case 1% loss for each 1% decline of worse performing index from initial level
|
| Call option: | At par on any monthly coupon payment date from Dec. 21 2017 to May 21, 2019
|
| Initial levels: | 2,442.20 for S&P, 1,413.325 for Russell
|
| Threshold levels: | 1,709.54 for S&P, 989.3275 for Russell; 70% of initial levels
|
| Pricing date: | June 21
|
| Settlement date: | June 26
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | None
|
| Cusip: | 94986R7A3
|
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