Published on 1/31/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $1.27 million market-linked notes on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Jan. 31 – Wells Fargo & Co. priced $1.27 million of market-linked securities due Feb. 1, 2027– callable with contingent coupon and contingent downside 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 coupon threshold level, 62.5% of its initial level, on the observation date for that quarter. The annual rate will be 7.1% for the first five years, 8.1% in years six through eight and 9.1% in years nine and 10.
The notes will be callable quarterly at par after six months.
The payout at maturity will be par unless either index finishes below its downside threshold level, 50% of its initial level, in which case the payout will be par plus the return of the lesser-performing index with full exposure to any losses.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
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| Issue: | Market-linked securities – callable with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500, Russell 2000
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| Amount: | $1.27 million
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| Maturity: | Feb. 1, 2027
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| Coupon: | Payable quarterly if each index closes at or above its coupon threshold on observation date for that quarter at annualized rate of 7.1% in years one to five, 8.1% in years six through eight and 9.1% in years nine and 10
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| Price: | Par
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| Payout at maturity: | Par unless either index closes below downside threshold, in which case full exposure to any losses of lesser-performing index
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| Initial levels: | 2,296.68 for S&P, 1,375.595 for Russell
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| Coupon threshold levels: | 1,435.425 for S&P, 859.746875 for Russell; 62.5% of initial levels
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| Downside threshold levels: 1,148.34 for S&P, 687.7975 for Russell; 50% of initial levels
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| Call option: | After six months, quarterly at par
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| Pricing date: | Jan. 26
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| Settlement date: | Jan. 31
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4.5%
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| Cusip: | 94986R3K5
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