Published on 8/1/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $1.31 million market-tied contingent coupon callables on indexes
By Susanna Moon
Chicago, Aug. 1 – Wells Fargo & Co. priced $1.31 million of market-linked securities – callable with contingent coupon and contingent downside due July 29, 2027 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.5% if each index closes at or above its threshold level, 75% of its initial level, on the observation date for that quarter.
The notes are callable at par on any observation date after one year.
The payout at maturity will be par unless any index finishes below its 75% threshold level, in which case the payout will be par plus the return of the worst 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 index, Russell 2000, Euro Stoxx 50
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| Amount: | $1,305,000
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| Maturity: | July 29, 2027
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| Coupon: | 9.5% annualized, payable quarterly if each index closes at or above 75% coupon threshold on observation date for that quarter
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| Price: | Par
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| Call option: | At par plus contingent coupon on any monthly observation date after one year
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| Payout at maturity: | Par unless any index falls by more than 50%, in which case par plus return of worst performing index
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| Initial index levels: | 2,477.83 for S&P, 1,442.279 for Russell and 3,491.19 for Stoxx
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| Coupon thresholds: | 1,858.372 for S&P, 1,081.70925 for Russell and 2,618.3925 for Stoxx; 75% of initial levels
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| Downside thresholds: | 1,238.915 for S&P, 721.1395 for Russell and 1,745.595 for Stoxx; 50% of initial levels
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| Pricing date: | July 26
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| Settlement date: | July 31
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4.25%
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| Cusip: | 95000E2B4
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