By Sarah Lizee
Olympia, Wash., Dec. 10 – Wells Fargo Finance LLC priced $1.12 million of 0% market-linked securities – leveraged upside participation to a cap with contingent absolute return and contingent downside and daily knock-in monitoring due May 31, 2022 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Wells Fargo & Co.
A knock-in event will occur if either index ever closes below 75% of its initial level on any day during the life of the notes.
If the final level of the lesser performing index is greater than or equal to its starting level, regardless of whether a knock-in event has occurred, the payout will be par plus 135% of the return of the lesser performing index, capped at par plus 38%.
If the final level of the lesser performing index is less than its starting level but a knock-in event has never occurred, the payout will be par plus the absolute value of the return of the lesser performing index, capped at par plus 25%.
If the final level of the lesser performing index is less than its starting level and a knock-in event has occurred, investors will have full downside exposure to the decrease of the lesser performing index from its initial level.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Wells Fargo Finance LLC
|
| Guarantor: | Wells Fargo & Co.
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| Issue: | Market-linked securities – leveraged upside participation to a cap with contingent absolute return and contingent downside and daily knock-in monitoring
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $1,116,000
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| Maturity: | May 31, 2022
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| Coupon: | 0%
|
| Price: | Par
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| Payout at maturity: | If the final level of the lesser performing index is greater than or equal to its starting level, par plus 135% of the lesser performing index return, capped at par plus 38%; if the final level of the lesser performing index is less than its starting level but a knock-in event has never occurred, par plus the absolute value of the return of the lesser performing index, capped at par plus 25%; if the final level of the lesser performing index is less than its starting level and a knock-in event has occurred, full downside exposure to decrease of the lesser performing index
|
| Knock-in event: | Occurs if either index ever closes below 75% of its initial level on any day during the life of the notes
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| Initial level: | 3,133.64 for S&P, 1,621.904 for Russell
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| Knock-in level: | 2,350.23 for S&P, 1,216.428 for Russell, 75% of initial level
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| Pricing date: | Nov. 25
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| Settlement date: | Nov. 29
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 2.25%
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| Cusip: | 95001HCN9
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