Wells Fargo plans S&P 500-linked notes with contingent minimum return

By Angela McDaniels

Tacoma, Wash., Feb. 27 – Wells Fargo & Co. plans to price 0% market-linked securities with upside participation, contingent minimum return and contingent downside due March 29, 2021 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index return is positive or zero, the payout at maturity will be par plus the greater of the contingent minimum return and the index return. The contingent minimum return is expected to be 40% to 45% and will be determined at pricing. If the index declines by 30% or less, the payout will be par. If the index declines by more than 30%, investors will be fully exposed to the index’s decline from its initial level.

Wells Fargo Securities LLC is the agent.

The notes are expected to price March 20 and settle March 27.

The Cusip number is 94986RWC1.

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