By Toni Weeks
San Diego, Sept. 5 - Wells Fargo & Co. priced $7 million of growth securities with leveraged capped upside and contingent downside protection due March 7, 2017 linked to a basket of four exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket is comprised 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 45%.
Investors will receive par if the basket falls by up to 20% and will be exposed to losses beyond the 20% buffer.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Growth securities with leveraged upside participation to a cap and fixed percentage buffered downside
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| Underlying ETFs: 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)
|
| Amount: | $7 million
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| Maturity: | March 7, 2017
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 1.5 times any gain in basket, up to maximum return of 45%; par if basket falls by up to 20%; exposure to any losses beyond 20% buffer
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| Initial share prices: | $141.24 for SPDR S&P 500 ETF Trust, $81.19 for iShares Russell 2000 index, $51.60 for iShares MSCI EAFE index fund and $39.28 for iShares MSCI Emerging Markets index fund
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| Buffer level: | 80%
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| Pricing date: | Aug. 31
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| Settlement date: | Sept. 10
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| Agent: | Wells Fargo Securities, LLC
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| Fees: | 2.25%
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| Cusip: | 94986RLA7
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