Published on 8/20/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $5 million contingent market-linked callables on indexes, fund
By Wendy Van Sickle
Columbus, Ohio, Aug. 20 – Wells Fargo & Co. priced $5 million market-linked securities due May 13, 2020 – callable with contingent coupon and contingent downside linked to the least performing of the S&P 500 index, the Russell 2000 index and the iShares MSCI EAFE ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 7.6% if each underlying asset closes at or above its 70% coupon barrier on the observation date for that month.
The notes are callable at par on any monthly observation date after six months.
The payout at maturity will be par unless any underlying asset finishes below its 70% downside threshold, in which case the payout will be par plus the return of the worst performing index or fund 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 iShares MSCI EAFE ETF
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| Amount: | $5 million
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| Maturity: | May 13, 2020
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| Coupon: | 7.6% annualized, payable monthly if each asset closes at or above 70% coupon barrier on observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless any asset falls by more than 30%, in which case 1% loss per 1% decline of worst performing asset
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| Call option: | At par on any interest payment date after six months
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| Initial levels: | 2,855.35 for S&P, 1,679.6 for Russell and $68.20 for ETF
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| Coupon barrier/thresholds: | 1,998.745 for S&P, 1,175.72 for Russell and $47.74 for ETF; 70% of initial levels
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| Pricing date: | Aug. 8
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| Settlement date: | Aug. 13
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 0%
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| Cusip: | 95001B6C3
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