Wells Fargo plans contingent income securities linked to Russell 2000

By Toni Weeks

San Luis Obispo, Calif., June 4 - Wells Fargo & Co. plans to price equity-linked securities with variable contingent coupon and contingent downside due June 28, 2019 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index closes at or above the initial index level on any quarterly calculation date, the coupon for that quarter will be 7.75% to 8.25%. If the index closes below the initial index level but at or above the threshold level, 70% of the initial level, the coupon will be 3%. If the index closes below the threshold level, no coupon will be paid that quarter.

If the final index level is greater than or equal to the 70% threshold level, the payout at maturity will be par. Otherwise, investors will be fully exposed to losses from the initial index level.

The notes (Cusip: 94986RPY1) will price June 25 and settle June 28.

Wells Fargo Securities, LLC will be the agent.

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