Published on 4/16/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $1.34 million callable market-linked notes on indexes
By Marisa Wong
Morgantown, W.Va., April 16 – Wells Fargo & Co. priced $1.34 million of market-linked securities– callable with contingent coupon and contingent downside – due April 3, 2023 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 9% if each index closes at or above its 70% coupon threshold on the related quarterly observation date.
After one year, the notes are callable at par on any contingent coupon payment date.
The payout at maturity will be par unless any index finishes below its 60% 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, Russell 2000 and Dow Jones industrial average
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| Amount: | $1,342,000
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| Maturity: | April 3, 2023
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| Coupon: | 9% annualized, payable each quarter that each index closes at or above coupon threshold 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 contingent coupon payment date after one year
|
| Initial levels: | 2,605.00 for S&P, 1,513.031 for Russell and 23,848.42 for Dow
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| Coupon thresholds: | 1,823.50 for S&P, 1,059.1217 for Russell and 16,693.894 for Dow; 70% of initial levels
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| Downside thresholds: | 1,563.00 for S&P, 907.8186 for Russell and 14,309.052 for Dow; 60% of initial levels
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| Pricing date: | March 28
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| Settlement date: | April 3
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 0.75%
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| Cusip: | 95001B2V5
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