Wells Fargo plans to price notes with averaging linked to three ETFs

By Angela McDaniels

Tacoma, Wash., Oct. 2 - Wells Fargo & Co. plans to price 0% market-linked notes due November 2019 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 65% weight, the iShares MSCI EAFE index fund with a 25% weight and the iShares MSCI Emerging Markets index fund with a 10% weight.

If the final basket level is greater than the initial basket level, the payout at maturity will be par plus 100% to 110% of the basket return. The exact participation rate will be set at pricing. If the final basket level is less than or equal to the initial basket level, the payout will be par.

The initial basket level will be 100. The final basket level will be 100 plus an amount equal to one plus the sum of (a) 65% of the return of the SPDR S&P 500, (b) 25% of the return of the iShares MSCI EAFE and (c) 10% of the return of the iShares MSCI Emerging Markets.

When calculating a basket component's return, its final share price will be the average of its closing share prices on the last trading day of each January, April, July and October from January 2013 through October 2019.

The notes will settle in November.

Wells Fargo Securities LLC is the agent.

The Cusip number is 94986RLU3.

© 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.