Wells Fargo eyes market-linked callable notes tied to S&P and Russell

By Devika Patel

Knoxville, Tenn., Dec. 28 – Wells Fargo & Co. plans to price market-linked securities due Feb. 2, 2024 –callable with contingent coupon and contingent downside linked to the least performing of the S&P 500 index 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 between 8.1% and 9.1% if each index closes at or above its coupon threshold level, 70% of its initial level, on the observation date for that quarter. The exact coupon will be set at pricing.

The notes will be callable at par quarterly on any coupon payment date from July 2019 through October 2023.

The payout at maturity will be par plus any coupon unless either index finishes below its 60% downside threshold level, in which case the payout will be par plus the return of the worst performing index with one-to-one exposure to any losses.

Wells Fargo Securities LLC is the agent.

The notes (Cusip: 95001BBU7) will price on Jan. 31 and settle on Feb. 5.

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