Wells Fargo plans contingent coupon notes linked to S&P 500, Russell

By Angela McDaniels

Tacoma, Wash., May 8 – Wells Fargo & Co. plans to price autocallable market-linked securities with contingent coupon and contingent downside due May 14, 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.

Each quarter, the notes will pay a contingent coupon if each index closes at or above its threshold level, 50% of its initial level, on the calculation day for that quarter. The contingent coupon rate is expected to be at least 5.35% per year and will be set at pricing.

If each index’s final level is greater than or equal to its threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final level of the lesser-performing index is less than its initial level.

After one year, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly calculation date.

Wells Fargo Securities LLC is the agent.

The notes will price May 10.

The Cusip number is 94986R6D8.

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