By Toni Weeks
San Luis Obispo, Calif., Jan. 24 - Wells Fargo & Co. priced $3.2 million of autocallable access securities with contingent coupon and contingent downside due Jan. 28, 2016 linked to the SPDR S&P Homebuilders exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent coupon at an annualized rate of 6.05% if the closing price of the fund is greater than or equal to the threshold price on any quarterly calculation date. The threshold price is 70% of the initial price. Interest is payable quarterly.
The notes will be automatically called at par plus accrued interest if the fund closes at or above the initial price on any of the first seven quarterly calculation dates.
If the notes are not called and the fund's final level is at least 70% of the initial price, the payout at maturity will be par. Otherwise, investors will be fully exposed to the fund decline from the initial share price.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Autocallable access securities
|
| Underlying fund: | SPDR S&P Homebuilders ETF
|
| Amount: | $3.2 million
|
| Maturity: | Jan. 28, 2016
|
| Coupon: | 6.05% per year, payable quarterly if closing share price is greater than or equal to threshold price on any quarterly calculation date; otherwise, none for that period
|
| Price: | Par
|
| Payout at maturity: | If final share price is at least 70% of initial price, par; otherwise, 1% loss for every 1% decline from initial price
|
| Initial price: | $32.17
|
| Threshold price: | $22.519, 70% of initial price
|
| Call: | At par plus accrued interest if share price closes at or above initial price on first seven quarterly calculation dates beginning April 22
|
| Pricing date: | Jan. 22
|
| Settlement date: | Jan. 28
|
| Agent: | Wells Fargo Securities, LLC
|
| Fees: | None
|
| Cusip: | 94986RSV4
|
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