Published on 8/7/2019 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $2.66 million leveraged upside participation notes on index, ETF basket
By Kiku Steinfeld
Chicago, Aug. 7 – Wells Fargo Finance LLC priced $2.66 million of 0% equity-linked securities with leveraged upside participation to a cap and a fixed percentage buffered downside due Oct. 30, 2020 linked to a basket of two indexes and two exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the iShares MSCI EAFE exchange-traded fund with a 25% weight, the iShares MSCI Emerging Markets exchange-traded fund with a 15% weight, the Russell 2000 index with an 18% weight and the S&P 500 index with a 42% weight.
If the index return is positive, the payout at maturity will be par plus 150% of the gain, capped at a 10.6% maximum gain.
If the index falls by up to 10%, the payout will be par.
If the index falls by more than 10%, investors will lose 1% for every 1% decline beyond 10%.
The notes are guaranteed by Wells Fargo & Co.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Wells Fargo Finance LLC
|
| Guarantor: | Wells Fargo & Co.
|
| Issue: | Equity-linked securities with leveraged upside participation to a cap and fixed percentage buffered downside
|
| Underlying components: | iShares MSCI EAFE ETF (25% weight), iShares MSCI Emerging Markets ETF (15% weight), S&P 500 index (42% weight), Russell 2000 index (18%)
|
| Amount: | $2,655,000
|
| Maturity: | Oct. 30, 2020
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If the index return is positive, par plus 150% of the gain up to a 10.6% maximum gain; if the index falls by up to 10%, par; 1% loss for every 1% drop beyond 10%
|
| Initial level: | $65.37 for EAFE, $42.61 for EM, 3,003.67 for S&P, 1,561.449 for Russell
|
| Threshold level: | 90% of initial levels
|
| Pricing date: | July 25
|
| Settlement date: | July 30
|
| Agent: | Wells Fargo Securities, LLC
|
| Fees: | 0.6%
|
| Cusip: | 95001H7A3
|
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