Published on 9/18/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $2 million contingent market-linked callables tied to indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 18 – Wells Fargo & Co. priced $2 million of market-linked securities due Dec. 10, 2019 – callable with contingent coupon and contingent downside linked to the least 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 of 6.4% if each index closes at or above its 70% coupon threshold on the observation date for that quarter.
The notes are callable at par on any quarterly observation date March 2019 to November 2019.
The payout at maturity will be par unless either index finishes below its 70% 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
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| Amount: | $2 million
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| Maturity: | Dec. 10, 2019
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| Coupon: | 6.4% annualized, payable quarterly if each index closes at or above 70% coupon threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either index falls by more than 30%, 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 March 2019 to November 2019
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| Initial levels: | 2,895.2 for S&P, 1,727.6 for Russell
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| Coupon barriers: | 2,026.64 for S&P, 1,209.32 for Russell; 70% of initial levels
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| Downside thresholds: | 2,026.64 for S&P, 1,209.32 for Russell; 70% of initial levels
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| Pricing date: | Sept. 5
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| Settlement date: | Sept. 10
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 0%
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| Cusip: | 95001B6T6
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