By Angela McDaniels
Tacoma, Wash., June 7 - Wells Fargo & Co. priced $41.4 million of 0% optionally exchangeable securities due June 5, 2020 exchangeable for the common stock of Intel Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Beginning July 12, each security will be exchangeable at any time for 34.633 Intel shares. The issuer can settle exchanges in Intel stock or cash.
The exchange ratio is equivalent to an exchange price of $28.87 per Intel share. Intel stock closed at $24.71 on the pricing date.
Beginning June 5, 2018, the securities will be callable at any time. The redemption price is the greater of par and parity, which on any day is the exchange ratio multiplied by the closing share price.
The payout at maturity will be the greater of par and parity.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Optionally exchangeable securities
|
| Underlying stock: | Intel Corp. (NYSE: INTC)
|
| Amount: | $41.4 million
|
| Maturity: | June 5, 2020
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Greater of par and parity, which on any day equals 34.633 multiplied by closing share price
|
| Exchange option: | For 34.633 Intel shares per note beginning July 12
|
| Call option: | At greater of par and parity beginning June 5, 2018
|
| Initial share price: | $24.7847, which is based on an intra-day price of stock on pricing date
|
| Pricing date: | June 5
|
| Settlement dates: | June 12
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | Up to 2.1% for structuring and development costs
|
| Cusip: | 94986RQF1
|
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