Wells Fargo plans to sell market-linked securities tied to ETF basket

By Devika Patel

Knoxville, Tenn., Aug. 24 – Wells Fargo & Co. plans to price 0% market-linked securities with leveraged upside participation to a cap and fixed percentage buffered downside due Sept. 12, 2022 linked to a basket of four exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket components are the SPDR S&P 500 ETF trust with a 45% weight, iShares Russell 2000 ETF with a 20% weight, iShares MSCI EAFE ETF with a 20% weight and the iShares MSCI Emerging Markets ETF with a 15% weight.

The payout at maturity will be par plus 125% of any basket gain, subject to a maximum payout of 40% to 45%, with the exact cap to be set at pricing.

Investors will receive par if the basket falls by up to 15% and will lose 1% for every 1% decline beyond 15%.

Wells Fargo Securities, LLC is the agent.

The notes (Cusip: 95001B5N0) will price Aug. 31 and settle Sept. 10.

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