By Angela McDaniels
Tacoma, Wash., Nov. 2 - Wells Fargo & Co. priced $8.97 million of 0% growth securities due May 6, 2016 with upside participation to a cap and contingent downside protection linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the SPDR S&P 500 ETF Trust with a 35% weight, the iShares MSCI EAFE index fund with a 20% weight, the iShares MSCI Emerging Market index fund with a 20% weight, the SPDR S&P MidCap 400 ETF Trust with a 15% weight and the iShares Russell 2000 index fund with a 10% weight.
The payout at maturity will be par plus 150% of any increase in the basket, subject to a maximum return of 85%.
If the basket declines by 40% or less, the payout will be par.
If the basket declines by more than 40%, investors will be fully exposed to the decline from the initial level.
Wells Fargo Securities, LLC is the agent.
Issuer: | Wells Fargo & Co.
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Issue: | Growth securities
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Underlying ETFs: | SPDR S&P 500 ETF Trust (35% weight), the iShares MSCI EAFE index fund (20% weight), the iShares MSCI Emerging Market index fund (20% weight), the SPDR S&P MidCap 400 ETF Trust (15% weight) and the iShares Russell 2000 index fund (10% weight)
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Amount: | $8,967,000
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Maturity: | May 6, 2016
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus 150% of any basket gain, up to maximum return of 85%; par if basket declines by 40% or less; par plus basket return if basket declines by more than 40%
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Initial share prices: | $125.45 for SPDR; $52.37 for iShares MSCI EAFE; $40.80 for iShares MSCI Emerging Markets; $161.40 for SPDR S&P Midcap; $73.97 for iShares Russell 2000
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Pricing date: | Oct. 31
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Settlement date: | Nov. 8
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Agent: | Wells Fargo Securities, LLC
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Fees: | 2.5%
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Cusip: | 94986RGD7
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