Published on 8/16/2011 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $7.45 million 0% growth securities linked to basket of four ETFs
By Toni Weeks
San Diego, Aug. 16 - Wells Fargo & Co. priced $7.45 million of 0% growth securities with upside participation to a cap and contingent downside protection due Feb. 22, 2016 linked to an unequally weighted basket of four exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the SPDR S&P 500 exchange-traded fund 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 168%.
Investors will receive par if the basket declines by 40% or less and will be fully exposed to losses should the basket fall by more than 40%.
Wells Fargo Securities, LLC is the underwriter.
| Issuer: | Wells Fargo Securities, LLC
|
| Issue: | Growth securities with upside participation to a cap and contingent downside protection
|
| Underlying components: | SPDR S&P 500 exchange-traded fund 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
|
| Amount: | $7,445,000
|
| Maturity: | Feb. 22, 2016
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 1.5 times any gain the basket, capped at 168%; par if basket declines by up to 40%; full exposure to losses if basket falls by more than 40%
|
| Initial prices: | $118.15 for SPDR, $69.78 for iShares Russell, $52.91 for MSCI EAFE and $41.26 for iShares MSCI EM
|
| Threshold prices: | 60% of initial prices
|
| Pricing date: | Aug. 12
|
| Settlement date: | Aug. 19
|
| Underwriter: | Wells Fargo Securities, LLC
|
| Fees: | 2.5%
|
| Cusip: | 94986RFF3
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
