Published on 9/24/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $850,000 contingent market-linked autocalls tied to indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 24 – Wells Fargo & Co. priced $850,000 of market-linked securities due Sept. 21, 2023 – autocallable 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 6.15% if each index closes at or above its 80% coupon threshold on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date after one year.
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 – autocallable 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: | $850,000
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| Maturity: | Sept. 21, 2023
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| Coupon: | 6.15% annualized, 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 40%, in which case 1% loss per 1% decline of worst performing index
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| Call: | At par if each index closes at or above its initial level on any interest payment date after a year
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| Initial levels: | 2,904.31 for S&P, 26,246.96 for Dow, 1,710.971 for Russell
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| Coupon thresholds: | 2,323.448 for S&P, 20,997.568 for Dow, 1,368.7768 for Russell, 80% of initial levels
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| Downside thresholds: | 1,742.586 for S&P, 15,748.17 for Dow, 1,026.5826 for Russell, 60% 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: | 4.25%
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| Cusip: | 95001B7E8
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