By Jennifer Chiou
New York, April 8 - Wells Fargo & Co. priced $8 million of 0% optionally exchangeable securities due Jan. 24, 2020 exchangeable for the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The offering price is 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. As announced in offering materials on April 3, the exchange ratio is equivalent to an exchange price of $669.19 per Apple share. Apple stock closed at $429.79 (Nasdaq: AAPL) on April 2.
Beginning on Jan. 26, 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, which on the pricing date is $652.01.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Optionally exchangeable securities
|
| Underlying stock: | Apple Inc. (Nasdaq: AAPL)
|
| Amount: | $8 million
|
| Maturity: | Jan. 24, 2020
|
| Coupon: | 0%
|
| Price: | 95% of par
|
| Payout at maturity: | Par plus greater of $950 and parity
|
| Call: | At any time beginning on Jan. 26, 2018; redemption price is greater of (a) $950 per $1,000 principal amount of securities and (b) parity, which on any day is the exchange ratio multiplied by closing share price
|
| Initial share price: | $436.32
|
| Pricing date: | April 3
|
| Settlement date: | April 10
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | 1.113% for structuring and development costs
|
| Cusip: | 94986RPJ4
|
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