Wells Fargo to price autocallable buffered notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., April 14 – Wells Fargo & Co. plans to price 36- to 39-month 0% autocallable securities with buffered downside linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index’s closing level on either call observation date is greater than or equal to the initial index level, the notes will be automatically called at par plus the call premium. The first call observation date is expected to be 13 months from the pricing date, and the second call observation date is expected to be 24 months from the pricing date. The call premium is expected to be 6.5% to 7.583% for the first call observation date and 12% to 14% for the second call observation date.

If the notes are not called and the final index level is greater than or equal to the initial index level, the payout at maturity will be par plus the maturity date premium, which is expected to be 18% to 21%. Investors will receive par if the index declines by 10% or less and lose 1.1111% for every 1% that it declines beyond 10%.

The exact terms will be set at pricing.

Wells Fargo Securities LLC is the agent.

The notes will price and settle in April.

The Cusip number is 94986RK59.

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