By Angela McDaniels
Tacoma, Wash., April 18 - Wells Fargo & Co. priced $3.1 million of additional 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 original $8 million of notes priced April 3. The total issue size is now $11.1 million.
The offering price was 95% of par for both the original issue and the reopening.
Beginning April 22, 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 $426.24 (Nasdaq: AAPL) on the reopening date.
Beginning 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 was $636.95 on the reopening date.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Optionally exchangeable securities
|
| Underlying stock: | Apple Inc. (Nasdaq: AAPL)
|
| Amount: | $11.1 million, increased from $8 million
|
| Maturity: | Jan. 24, 2020
|
| Coupon: | 0%
|
| Price: | 95% of par
|
| Payout at maturity: | Greater of $950 and parity, which on any day equals 1.49434 multiplied by closing share price
|
| Exchange option: | For 1.49434 Apple shares per note beginning April 22
|
| Call option: | At greater of $950 and parity beginning Jan. 26, 2018
|
| Initial share price: | $436.32
|
| Pricing dates: | April 3 for original $8 million; April 16 for $3.1 million
|
| Settlement dates: | April 10 for original issue; April 19 for add-on
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | 1.113% for structuring and development costs
|
| Cusip: | 94986RPJ4
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