Published on 12/12/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $1.89 million 7.25% contingent market-linked autocalls on indexes
By Susanna Moon
Chicago, Dec. 12 – Wells Fargo & Co. priced $1.89 million of market-linked securities due May 27, 2021 – autocallable with contingent coupon and contingent downside linked to the least performing of the S&P 500 index, the Euro Stoxx 50 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 7.25% if each index closes at or above its 70% coupon threshold on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date six months.
The payout at maturity will be par unless any index finishes below its 70% downside threshold, in which case the payout will be par plus the return of the worst 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 – autocallable with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500, Euro Stoxx 50 and Russell 2000
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| Amount: | $1.89 million
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| Maturity: | May 27, 2021
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| Coupon: | 7.25% annualized, payable quarterly if each index closes at or above 70% coupon threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either index falls by more than 30%, in which investors will receive par plus return of the worst performing index with 1% loss per 1% decline
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| Call: | At par if each index closes at or above its initial level on any interest payment date from May 2018 to February 2021
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| Initial levels: | 2,597.08 for S&P, 3,562.65 for Stoxx, 1,516.762 for Russell
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| Thresholds: | 1,817.956 for S&P, 2,493.855 for Stoxx, 1,061.7334 for Russell; 70% of initial levels
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| Pricing date: | Nov. 22
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| Settlement date: | Nov. 28
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 1.575%
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| Cusip: | 95000E4H9
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