Published on 9/24/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $948,000 contingent coupon market-linked callables on three indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 24 – Wells Fargo & Co. priced $948,000 of market-linked securities due Sept. 21, 2023 – callable with contingent coupon and contingent downside linked to the least performing of the Nasdaq-100 index, Dow Jones industrial average 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 if each index closes at or above its 70% coupon threshold on the observation date for that quarter. The contingent coupon will be 5.7% for the first year, stepping up to 6.7% in December 2019, to 7.7% in December 2020, to 8.7% in December 2021 and to 9.7% in December 2022.
The notes are callable at par on any observation date after one year.
The payout at maturity will be par unless any index finishes below its 70% 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: | Dow Jones industrial average, Nasdaq-100 index, Russell 2000 index
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| Amount: | $948,000
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| Maturity: | Sept. 21, 2023
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| Coupon: | 5.7% annualized for year 1, stepping up to 6.7% for year 2, to 7.7% for year 3, to 8.7% for year 4 and to 9.7% for year 5, payable quarterly, if each index closes at or above coupon 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 30%, 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: | 26,246.96 for Dow, 1,710.971 for Russell and 7,494.399 for Nasdaq
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| Coupon thresholds: | 18,372.872 for Dow, 1,197.6797 for Russell and 5,246.0793 for Nasdaq, 70% of initial levels
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| Downside thresholds: | 18,372.872 for Dow, 1,197.6797 for Russell and 5,246.0793 for Nasdaq, 70% of initial levels
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| Pricing date: | Sept. 18
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| Settlement date: | Sept. 21
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4.7%
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| Cusip: | 95001B6Z2
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