Published on 2/1/2019 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $7.53 million contingent market-linked autocalls on S&P, Russell
By Sarah Lizee
Olympia, Wash., Feb. 1 – Wells Fargo Finance LLC priced $7.53 million of market-linked securities due Aug. 6, 2026 – autocallable with contingent coupon and fixed percentage buffered 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 are guaranteed by Wells Fargo & Co.
The notes will pay a contingent monthly coupon at an annual rate of 6.9% if each index closes at or above its 80% coupon threshold on the observation date for that period.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date beginning February 2020.
The payout at maturity will be par unless either index finishes below its 80% buffer level, in which case investors will lose 1% for every 1% decline of the lesser performing index beyond 20%.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo Finance LLC.
|
| Guarantor: | Wells Fargo & Co.
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| Issue: | Market linked securities – autocallable with contingent coupon and fixed percentage buffered downside
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| Underlying indexes: | S&P 500 index, Russell 2000 index
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| Amount: | $7.53 million
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| Maturity: | Aug. 6, 2026
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| Coupon: | 6.9% annualized, payable monthly if each index closes at or above coupon threshold on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | Par unless either index falls by more than 20%, in which case 1% loss per 1% decline of worst performing index beyond 20%
|
| Call: | At par if each index closes at or above its initial level on any interest payment date beginning February 2020
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| Initial levels: | 2,640.00 for S&P, 1,471.448 for Russell 2000
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| Coupon threshold/buffer levels: | 2,112.00 for S&P, 1,177.1584 for Russell 2000, 80% of initial levels
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| Pricing date: | Jan. 29
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| Settlement date: | Jan. 31
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 2.75%
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| Cusip: | 95001H2L4
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