Published on 3/20/2020 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $1.28 million contingent market-linked callables on three indexes
By Sarah Lizee
Olympia, Wash., March 20 – Wells Fargo Finance LLC prices $1.28 million of market-linked securities due March 18, 2025 – callable with contingent coupon and contingent downside linked to the least performing of the Euro Stoxx 50 index, S&P 500 index and Dow Jones industrial average, 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 if each index closes at or above its 70% coupon threshold on the observation date for that quarter. The contingent coupon will be 16.1% per year.
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 70% 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
|
| 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: | Euro Stoxx 50 index, S&P 500 index and Dow Jones industrial average
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| Amount: | $1,281,000
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| Maturity: | March 18, 2025
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| Coupon: | 16.1% per year, payable quarterly, if each index closes at or above coupon threshold on observation date for that quarter
|
| 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
|
| Call option: | At par on any interest payment date after one year
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| Initial levels: | 2,711.02 for S&P, 23,185.62 for Dow, 2,586.02 for Stoxx
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| Coupon thresholds: | 1,897.714 for S&P, 16,229.934 for Dow, 1,810.214; 70% of initial levels
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| Downside thresholds: | 1,897.714 for S&P, 16,229.934 for Dow, 1,810.214; 70% of initial levels
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| Pricing date: | March 13
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| Settlement date: | March 18
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 0.5%
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| Cusip: | 95001HGC9
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