Published on 1/2/2019 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $1.72 million buffered range accrual autocalls on S&P, Russell
By Sarah Lizee
Olympia, Wash., Jan. 2 – Wells Fargo & Co. priced $1.72 million of market-linked securities – autocallable range accrual securities with fixed percentage buffered downside due Dec. 31, 2020 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will accrue at 6.8% for each day that each index closes at or above the 85% barrier level. Interest will be payable monthly.
The payout at maturity will be par unless the laggard index falls by more 15%, and investors will be exposed to any losses of the lesser-performing index beyond 15%.
The notes will be called at par plus the coupon if each index closes at or above its initial level on any quarterly observation date after six months.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Market-linked securities – autocallable range accrual securities with fixed percentage buffered downside
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $1,722,000
|
| Maturity: | Dec. 31, 2020
|
| Coupon: | 6.8% times proportion of days on which each index closes at or above coupon barrier level; payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par if lesser-performing index falls by up to 15%; exposure to losses of laggard index beyond 15% buffer
|
| Call: | At par plus coupon if each index closes at or above initial level on any quarterly observation date beginning June 2019
|
| Initial index levels: | 1,331.817 for Russell and 2,488.83 for S&P
|
| Coupon barrier/buffer levels: | 1,132.04445 for Russell and 2,115.5055 for S&P; 85% of initial levels
|
| Pricing date: | Dec. 27
|
| Settlement date: | Dec. 31
|
| Agent: | Wells Fargo Securities, LLC
|
| Fees: | 2.75%
|
| Cusip: | 95001BBM5
|
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