Published on 6/4/2012 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $8.12 million 0% growth securities tied to four ETFs
By Marisa Wong
Madison, Wis., June 4 - Wells Fargo & Co. priced $8.12 million of 0% growth securities with leveraged upside participation to a cap and fixed percentage buffered downside due Dec. 7, 2016 linked to a 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 ETF 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 60%.
Investors will receive par if the basket declines by 20% or less and will be exposed to losses beyond the 20% buffer.
Wells Fargo Securities, LLC is the underwriter.
Issuer: | Wells Fargo Securities, LLC
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Issue: | Growth securities with leveraged upside participation to a cap and fixed percentage buffered downside
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Underlying components: | SPDR S&P 500 ETF trust (45% weight), iShares Russell 2000 index fund (20% weight), iShares MSCI EAFE index fund (20% weight) and iShares MSCI Emerging Markets index fund (15% weight)
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Amount: | $8,118,000
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Maturity: | Dec. 7, 2016
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus 1.5 times any gain the basket, capped at 60%; par if basket declines by up to 20%; exposure to losses beyond 20%
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Initial prices: | $131.49 for SPDR S&P 500, $76.10 for iShares Russell, $47.76 for iShares MSCI EAFE and $37.70 for iShares MSCI EM
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Threshold prices: | 80% of initial prices
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Pricing date: | May 31
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Settlement date: | June 7
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Underwriter: | Wells Fargo Securities, LLC
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Fees: | 2.25%
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Cusip: | 94986RJQ5
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