Published on 5/16/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $1.28 million 7.2% contingent market-linked callables tied to indexes
By Susanna Moon
Chicago, May 16 – Wells Fargo & Co. priced $1.28 million of market-linked securities due May 9, 2023 – callable with contingent coupon and contingent downside linked to the least performing of the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7.2% if each index closes at or above its 60% coupon threshold on the observation date for that quarter.
The notes are callable at par on any quarterly observation date after one year.
The payout at maturity will be par unless any index finishes below its 55% downside 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 – callable with contingent coupon and contingent downside
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Underlying indexes: | S&P 500 index, Russell 2000 index and Dow Jones industrial average
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Amount: | $1,275,000
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Maturity: | May 9, 2023
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Coupon: | 7.2% annualized, payable quarterly if each index closes at or above 60% coupon threshold on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless any index falls by more than 45%, in which case 1% loss per 1% decline of worst performing index
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Call option: | At par on any interest payment date from May 2019 to February 2023
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Initial levels: | 2,663.42 for S&P, 1,565.603 for Russell and 24,262.51 for Dow
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Coupon thresholds: | 1,598.052 for S&P, 939.3618 for Russell and 14,557.506 for Dow; 60% of initial levels
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Downside thresholds: | 1,464.881 for S&P, 861.08165 for Russell and 13,344.3805 for Dow; 55% of initial levels
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Pricing date: | May 4
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Settlement date: | May 9
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Agent: | Wells Fargo Securities LLC
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Fees: | 0.7%
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Cusip: | 95001B3U6
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