By Angela McDaniels
Tacoma, Wash., June 12 - Wells Fargo & Co. priced $4.28 million principal amount 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 was $930.99 per $1,000 principal amount of notes.
Beginning June 24, each security will be exchangeable at any time at the option of its holder for 1.49563 Apple shares. The issuer can settle exchanges in Apple stock or cash.
Beginning Jan. 26, 2018, the securities will be callable at any time. For each $1,000 principal amount of notes, the redemption price is the greater of $950 and parity.
Parity on any day equals the exchange ratio multiplied by the closing share price. Parity on the pricing date was $669.13. The exchange ratio, 1.49563, is equal to $669.13 divided by the initial share price.
The payout at maturity will be the greater of $950 and parity.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Optionally exchangeable securities
|
| Underlying stock: | Apple Inc. (Nasdaq: AAPL)
|
| Amount: | $4,275,000
|
| Proceeds: | $3,979,982.25
|
| Maturity: | Jan. 24, 2020
|
| Coupon: | 0%
|
| Price: | 93.099
|
| Payout at maturity: | Greater of $950 and parity, which on any day equals 1.49563 multiplied by closing share price
|
| Exchange option: | For 1.49563 Apple shares per note beginning June 24
|
| Call option: | At greater of $950 and parity beginning Jan. 26, 2018
|
| Initial share price: | $447.39, which is based on an intra-day price of stock on pricing date
|
| Pricing date: | June 10
|
| Settlement date: | June 17
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | Offering price includes up to 0.796% for structuring and development costs
|
| Cusip: | 94986RQJ3
|
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