Wells Fargo to price securities optionally exchangeable for Apple

By Angela McDaniels

Tacoma, Wash., April 3 - Wells Fargo & Co. plans to price 0% optionally exchangeable securities due January 2020 exchangeable for the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The offering price will be 95% of par.

Each security will be exchangeable at any time for 1.49434 Apple shares. The issuer can settle exchanges in Apple stock or cash.

The exchange ratio is equivalent to an exchange price of $669.19 per Apple share. Apple stock closed at $429.79 (Nasdaq: AAPL) on Tuesday.

Beginning in January 2018, the securities will be callable at any time. The redemption price is the greater of (a) $950 per $1,000 principal amount of securities and (b) parity, which on any day is the exchange ratio multiplied by the closing share price.

The payout at maturity will be the greater of $950 and parity.

Wells Fargo Securities LLC is the agent.

The notes will price and settle in April.

The Cusip number is 94986RPJ4.

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