Published on 1/23/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $2.74 million 8.16% contingent market-tied autocalls on indexes
By Susanna Moon
Chicago, Jan. 23 – Wells Fargo & Co. priced $2.74 million of market-linked securities due Jan. 24, 2022 – autocallable with contingent coupon and contingent downside linked to the lesser 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 8.16% if each index closes at or above its 75% 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 after six months.
The payout at maturity will be par unless any index finishes below its 75% 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: | $2,737,000
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| Maturity: | Jan. 24, 2022
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| Coupon: | 8.16%, payable quarterly at annualized rate if each index closes at or above 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 25%, 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 July 2018 to October 2021
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| Initial levels: | 2,798.03 for S&P, 3,620.91 for Stoxx, 1,576.729 for Russell
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| Thresholds: | 2,098.5225 for S&P, 2,715.6825 for Stoxx, 1,182.54675 for Russell; 75% of initial levels
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| Pricing date: | Jan. 18
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| Settlement date: | Jan. 23
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 1.575%
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| Cusip: | 95000E5A3
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