Published on 1/3/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $1.45 million contingent market-linked autocalls on indexes
By Wendy Van Sickle
Columbus, Ohio, Jan. 3 – Wells Fargo & Co. priced $1.45 million of market-linked securities due Dec. 30, 2027 – autocallable with contingent coupon and contingent downside linked to the least performing of the S&P 500 index, the Euro Stoxx 50 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 75% coupon barrier on the observation date for that quarter. The annual rate is initially 9% and steps up to 11.7% in March 2023.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date a year.
The payout at maturity will be par unless any index finishes below its 50% threshold, 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 – autocallable with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500, Euro Stoxx 50 and Russell 2000
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| Amount: | $1,454,000
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| Maturity: | Dec. 30, 2027
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| Coupon: | Payable quarterly at annualized rate if each index closes at or above coupon barrier on observation date for that quarter; rate is 9% initially, stepping up to 11.7% in March 2023
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| Price: | Par
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| Payout at maturity: | Par unless either index falls by more than 50%, in which investors will receive par plus return of the worst performing index with 1% loss per 1% decline
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| Call: | At par if each index closes at or above its initial level on any interest payment date from December 2018 to September 2027
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| Initial levels: | 2,682.62 for S&P, 3,550.17 for Stoxx, 1,543.937 for Russell
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| Coupon barriers: | 2,011.965 for S&P, 2,662.6275 for Stoxx, 1,157.95275 for Russell; 75% of initial levels
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| Thresholds: | 1,341.31 for S&P, 1,775.085 for Stoxx, 771.9685 for Russell; 50% of initial levels
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| Pricing date: | Dec. 27
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| Settlement date: | Dec. 29
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4.4%
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| Cusip: | 95000E4L0
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