Published on 6/24/2013 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $1.83 million add-on to securities optionally exchangeable for Intel
By Toni Weeks
San Luis Obispo, Calif., June 24 - Wells Fargo & Co. priced an additional $1.83 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.
The issuer priced $41.4 million of the notes at par on June 5 and another $1.11 million of the notes at 99.75 on June 12. The latest add-on priced at 97.95 on June 20. The total issue size is now $44.34 million.
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.
Beginning June 5, 2018, the securities will be callable at any time. The redemption price is the greater of par and parity.
The payout at maturity will be the greater of par and parity.
Parity on any day equals the exchange ratio multiplied by the closing share price. Parity on the June 5 pricing date was $858.37. The exchange ratio, 34.633, is equal to $858.37 divided by the initial share price.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Optionally exchangeable securities
|
| Underlying stock: | Intel Corp. (NYSE: INTC)
|
| Amount: | $44,341,000, increased from $41.4 million
|
| Maturity: | June 5, 2020
|
| Coupon: | 0%
|
| Price: | Par for original issue; 99.75 for $1,114,000 add-on; 97.95 for $1,827,000 add-on
|
| 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 initial pricing date
|
| Pricing dates: | June 5 for $41.4 million; June 12 for $1,114,000; June 20 for $1,827,000
|
| Settlement dates: | June 12 for original issue; June 17 for $1,114,000; June 24 for latest add-on
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | Up to 2.1% for structuring and development costs for original issue and up to 1.77% for add-on
|
| Cusip: | 94986RQF1
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