Published on 5/2/2012 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $5.84 million 0% growth securities linked to basket of four ETFs
By Toni Weeks
San Diego, May 1 - Wells Fargo & Co. priced $5.84 million of 0% growth securities with upside participation to a cap and fixed percentage buffered downside due Nov. 7, 2016 linked to a basket of four unequally weighted exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the SPDR S&P 500 ETF trust with a 45% weight, the iShares Russell 2000 index fund with a 20% weight, the iShares MSCI EAFE index fund with a 20% weight and the iShares MSCI Emerging Markets index fund with a 15% weight.
The payout at maturity will be par plus 1.5 times any gain in the basket, up to a maximum return of 48%.
Investors will receive par if the basket declines by 20% or less and will be exposed to losses beyond the 20% buffer.
Wells Fargo Securities, LLC is the underwriter.
| Issuer: | Wells Fargo Securities, LLC
|
| Issue: | Growth securities with upside participation to a cap and fixed percentage buffered downside
|
| Underlying components: | SPDR S&P 500 ETF trust (45% weight), iShares Russell 2000 index fund (20% weight), iShares MSCI EAFE index fund (20% weight) and iShares MSCI Emerging Markets index fund (15% weight)
|
| Amount: | $5,841,000
|
| Maturity: | Nov. 7, 2016
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 1.5 times any gain the basket, capped at 48%; par if basket declines by up to 20%; exposure to losses beyond 20%
|
| Initial prices: | $139.77 for SPDR S&P 500 ETF, $81.43 for iShares Russell, $53.75 for iShares MSCI EAFE and $42.20 for iShares MSCI EM
|
| Threshold prices: | 80% of initial prices
|
| Pricing date: | April 30
|
| Settlement date: | May 8
|
| Underwriter: | Wells Fargo Securities, LLC
|
| Fees: | 2.25%
|
| Cusip: | 94986RJG7
|
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