Published on 4/9/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $618,000 7.1% contingent market-linked callables tied to indexes
By Susanna Moon
Chicago, April 9 – Wells Fargo & Co. priced $618,000 of market-linked securities due March 1, 2022 – 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 7.1% if each index closes at or above its 60% coupon threshold on the observation date for that quarter.
The notes are callable at par on any quarterly observation date after one year.
The payout at maturity will be par unless any index finishes below its 50% 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 – callable with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $618,000
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| Maturity: | April 3, 2023
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| Coupon: | 7.1% annualized, payable quarterly 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 any index falls by more than 50%, in which case 1% loss per 1% decline of worst performing index
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| Call option: | At par on any interest payment date after one year
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| Initial levels: | 2,640.87 for S&P, 1,529.427 for Russell and 24,103.11 for Dow
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| Coupon thresholds: | 1,584.52 for S&P, 917.66 for Russell and 14,461.866 for Dow; 60% of initial levels
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| Downside thresholds: | 1,320.435 for S&P, 764.7135 for Russell and 12,051.555 for Dow; 50% of initial levels
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| Pricing date: | March 29
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| Settlement date: | April 4
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 1.125%
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| Cusip: | 95001B3B8
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