Published on 2/14/2020 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $675,000 callable market-linked contingent notes on S&P, Dow
By Sarah Lizee
Olympia, Wash., Feb. 14 – Wells Fargo Finance LLC priced $675,000 of market-linked securities due Feb. 6, 2025 – callable with contingent coupon and contingent downside linked to the least performing of the S&P 500 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Wells Fargo & Co.
The notes will pay a contingent monthly coupon if each index closes at or above its 70% coupon threshold on the observation date for that period. The coupon will be 5.5% per year.
Wells Fargo may call the notes in whole at par monthly after six months.
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 Finance LLC
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| Guarantor: | 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, Dow Jones industrial average
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| Amount: | $675,000
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| Maturity: | Feb. 6, 2025
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| Coupon: | 5.5% per year, payable monthly if each index closes at or above coupon threshold on observation date for that period
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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: | In whole at par monthly after six months
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| Initial levels: | 3,248.92 for S&P, 28,399.81 for Dow
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| Coupon thresholds: | 2,274.244 for S&P, 19,879.867 for Dow, 70% of initial levels
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| Downside thresholds: | 1,786.906 for S&P, 15,619.8955 for Dow, 55% of initial levels
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| Pricing date: | Feb. 3
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| Settlement date: | Feb. 6
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 0.35%
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| Cusip: | 95001HEE7
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