Published on 3/13/2020 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $2.07 million contingent market-linked callables on Dow, S&P
By Wendy Van Sickle
Columbus, Ohio, March 13 – Wells Fargo Finance LLC priced $2.07 million of market-linked securities due March 14, 2025 – callable with contingent coupon and contingent downside linked to the least performing of the Dow Jones industrial average 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.
The notes will pay a contingent quarterly coupon at an annual rate of 7.2362% if each index closes at or above its 60% coupon threshold on the observation date for that quarter.
The notes are callable at par on any quarterly observation date after one year.
The payout at maturity will be par unless either index finishes below its 60% downside threshold, in which case the payout will be par plus the return of the worse performing index with full exposure to any losses.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo Finance LLC
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| Guarantor: | Wells Fargo & Co.
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| Issue: | Market linked securities – callable with contingent coupon and contingent downside
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| Underlying indexes: | Dow Jones industrial average, S&P 500 index
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| Amount: | $2.07 million
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| Maturity: | March 14, 2025
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| Coupon: | 7.2362% annualized, payable quarterly if each index closes at or above coupon threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either index falls by more than downside threshold, in which case 1% loss per 1% decline of worse performing index
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| Call option: | At par on any interest payment date after one year
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| Initial levels: | 2,741.38 for S&P, 23,533.22 for Dow
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| Coupon threshold: | 1,644.828 for S&P, 14,131.932 for Dow; 60% of initial levels
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| Downside thresholds: | 1,644.828 for S&P, 14,131.932 for Dow; 60% of initial levels
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| Pricing date: | March 11
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| Settlement date: | March 16
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 1.075%
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| Cusip: | 95001HGU9
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