Published on 8/29/2019 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $70,000 contingent coupon autocallables linked to indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 29 – Wells Fargo Finance LLC priced $70,000 of autocallable market-linked securities with contingent coupon and contingent downside due Sept. 7, 2029 linked to the lowest performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 8% per year if each index closes at or above its coupon threshold level, 75% of its initial level, on the calculation day for that quarter.
From September 2020 to June 2029, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly calculation day.
If each index’s final level is greater than or equal to its downside threshold level, 60% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final level of the worst-performing index is less than its initial index level.
The notes are guaranteed by Wells Fargo & Co.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo Finance LLC
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| Guarantor: | Wells Fargo & Co.
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| Issue: | Autocallable market-linked securities with contingent coupon and contingent downside
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| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
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| Amount: | $70,000
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| Maturity: | Sept. 7, 2029
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| Coupon: | 8% per year, payable quarterly if each index closes at or above coupon threshold level on calculation day for that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par; otherwise, 1% loss for every 1% that worst-performing index’s final level is less than initial level
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| Call option: | From September 2020 to June 2029, notes will be automatically called at par if each index closes at or above initial level on any quarterly calculation day
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| Initial levels: | 2,869.16 for S&P 500, 1,456.039 for Russell 2000 and 3,370.47 for Euro Stoxx 50
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| Coupon thresholds: | 2,151.87 for S&P 500, 1,09202925 for Russell 2000 and 2,527.8525 for Euro Stoxx 50, or 75% of initial levels
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| Downside thresholds: | 1,721.496 for S&P 500, 873.6234 for Russell 2000 and 2,022.282 for Euro Stoxx 50, or 60% of initial levels
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| Pricing date: | Aug. 27
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| Settlement date: | Aug. 30
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4%
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| Cusip: | 95001H7H8
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