Published on 2/16/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $1.03 million callable contingent market-linked notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 16 – Wells Fargo & Co. priced $1.03 million of market-linked securities due Feb. 16, 2023 – callable with contingent coupon and contingent downside linked to the least performing of the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.9% if each index closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be callable at par on any quarterly observation date after one year.
The payout at maturity will be par unless any index finishes below its 60% 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.
|
| Issue: | Market linked securities – callable with contingent coupon and contingent downside
|
| Underlying indexes: | S&P 500, Russell 2000 and Dow Jones industrial average
|
| Amount: | $1,025,000
|
| Maturity: | Feb. 16, 2023
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| Coupon: | 8.9% annualized, payable quarterly if each index closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any index falls by more than 40%, in which case 1% loss per 1% decline of worst performing index
|
| Call option: | At par on any interest payment date after one year
|
| Initial levels: | 2,662.94 for S&P, 1,494.95 for Russell and 24,640.45 for Dow
|
| Coupon barriers: | 1,864.058 for S&P, 1,046.465 for Russell and 17,248.315 for Dow; 70% of initial levels
|
| Thresholds: | 1,597.764 for S&P, 896.97 for Russell and 14,784.27 for Dow; 60% of initial levels
|
| Pricing date: | Feb. 13
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| Settlement date: | Feb. 16
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | 1%
|
| Cusip: | 95001B2M5
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