Published on 3/6/2020 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $2.04 million callable market-linked notes on indexes
By Sarah Lizee
Olympia, Wash., March 6 – Wells Fargo Finance LLC priced $2.04 million of market-linked securities due March 4, 2025 – callable with contingent coupon and contingent downside linked to the least performing of the Nasdaq-100 index, the Russell 2000 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 quarterly coupon at an annual rate of 8.2% if each index closes at or above its 75% coupon threshold on the observation date for that period.
Wells Fargo may call the notes in whole at par plus any coupon due on any quarterly redemption date after six months.
The payout at maturity will be par unless any index finishes below its 60% 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: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
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Amount: | $2,036,000
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Maturity: | March 4, 2025
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Coupon: | 8.2%, payable quarterly 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 40%, in which case 1% loss per 1% decline of worst performing index
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Call: | In whole at par plus any coupon on any quarterly redemption date after six months
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Initial levels: | 25,766.64 for Dow, 1,497.870 for Russell, 8,436.666 for Nasdaq
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Coupon thresholds: | 19,324.98 for Dow, 1,123.4025 for Russell, 6,327.4995 for Nasdaq, 75% of initial levels
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Downside thresholds: | 15,459.984 for Dow, 898.722 for Russell, 5,061.9996 for Nasdaq, 60% of initial levels
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Pricing date: | Feb. 27
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Settlement date: | March 3
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Agent: | Wells Fargo Securities LLC
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Fees: | 0.4%
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Cusip: | 95001HFF3
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