Published on 7/5/2019 in the Prospect News Structured Products Daily.
New Issue: Wells prices $3.5 million contingent market-linked notes on S&P, Russell
By Sarah Lizee
Olympia, Wash., July 5 – Wells Fargo Finance LLC priced $3.5 million of market-linked securities due July 7, 2020 – contingent coupon and contingent downside linked to the least performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Wells Fargo & Co.
Each month, the notes will pay a contingent coupon at an annual rate of 6.25% if each index closes above its threshold level, 70% of its initial level, on the observation date for that month.
Wells Fargo may redeem the notes in whole at par on any monthly redemption date, starting in October.
The payout at maturity will be par unless any index finishes below its threshold level, in which case investors will have full exposure to the decline of the lesser performing index from its initial level.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo Finance LLC
|
| Guarantor: | Wells Fargo & Co.
|
| Issue: | Market-linked securities – contingent coupon and contingent downside
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $3.5 million
|
| Maturity: | July 7, 2020
|
| Coupon: | Notes will pay a contingent coupon at an annual rate of 6.25% if each index closes above its threshold level, 70% of its initial level, on the observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless any index finishes below its threshold level, in which case investors will have full exposure to the decline of the lesser performing index from its initial level
|
| Call: | Wells Fargo may redeem the notes in whole at par on any monthly redemption date, starting in October
|
| Initial levels: | 2,924.92 for S&P, 1,546.55 for Russell
|
| Threshold level: | 2,047.444 for S&P, 1,082.585 for Russell, 70% of initial level
|
| Pricing date: | June 28
|
| Settlement date: | July 2
|
| Agent: | Wells Fargo Securities LLC
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| Fees: | None
|
| Cusip: | 95001H6R7
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