Wells Fargo plans 10-year market-linked notes on S&P 500, Russell

By Wendy Van Sickle

Columbus, Ohio, Jan. 9 – Wells Fargo & Co. plans to price market-linked securities– callable with contingent coupon and contingent downside – due Feb. 1, 2027 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate if each index closes at or above its 62.5% coupon threshold level on a quarterly observation date. The annual rate will be at least 7% in the first five years, at least 8% in years six through eight and at least 9% in years nine and 10.

The notes will be callable at par on any quarterly observation date after one year.

The payout at maturity will be par unless either index finishes below its downside threshold level, 50% of its initial level, in which case investors will be fully exposed to the loss of the worse performing index.

Wells Fargo Securities LLC is the agent.

The notes will price on Jan. 26 and settle on Jan. 31.

The Cusip number is 94986R3K5.

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