Wells Fargo delays pricing of notes exchangeable for Caterpillar stock

By Angela McDaniels

Tacoma, Wash., May 9 - Wells Fargo & Co. changed the pricing and maturity dates of its upcoming 0% optionally exchangeable securities exchangeable for the common stock of Caterpillar Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will price and settle in May and mature in May 2019. Originally, they were expected to price and settle in March and mature in March 2019.

Each note has a principal amount of $1,000.

Investors may exchange their notes for a number of Caterpillar shares equal to the exchange ratio, which will equal initial parity divided by the initial share price. The issuer has the option to settle exchanges in cash instead of shares.

Wells Fargo will set initial parity on the pricing date. It will be less than $1,000. On subsequent days, parity will equal the exchange ratio multiplied by the closing share price on that day.

The notes will be callable. The redemption amount will be the greater of par and parity.

The payout at maturity will be the greater of par and parity.

Wells Fargo Securities LLC is the underwriter.

The Cusip number is 94986RJB8.

© 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.