Wells Fargo eyes callable contingent market-linked notes on indexes

By Sarah Lizee

Olympia, Wash., Feb. 5 – Wells Fargo Finance LLC plans to price market-linked securities – callable with contingent coupon and contingent downside – due March 6, 2029 linked to the lesser 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.

Each quarter, the notes will pay a contingent coupon if each index closes at or above its 75% coupon threshold level on the observation date for that quarter. The coupon will be 7.15% per year initially, stepping up to 9% per year in June 2024 and to 10% per year in June 2027. The exact coupon will be set at pricing.

The notes will be callable at par on any contingent coupon payment date after six months.

The payout at maturity will be par unless either index finishes below its threshold level, 50% of its initial level, in which case the payout will be par plus the return of the lesser-performing index with full exposure to any losses.

Wells Fargo Securities LLC is the agent.

The notes will price on Feb. 25.

The Cusip number is 95001H2R1.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.