By Toni Weeks
San Luis Obispo, Calif., April 2 - Wells Fargo & Co. priced $1.82 million of 0% market-linked securities with leveraged upside participation to a cap and fixed percentage buffered downside due Oct. 6, 2017 linked to a basket of unequally weighted exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket components are the SPDR S&P 500 ETF Trust with a 50% weight, iShares Russell 2000 ETF with a 20% weight, iShares MSCI EAFE ETF with a 15% weight and iShares MSCI Emerging Markets ETF with a 15% weight.
If the basket return is positive, the payout at maturity will be par plus 150% of the gain, subject to a maximum return of 35%.
Investors will receive par if the basket decreases by up to 10% and will lose 1% for every 1% drop beyond the 10% buffer.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Market-linked securities
|
| Underlying ETFs: SPDR S&P 500 ETF Trust (50% weight), iShares Russell 2000 ETF (20% weight), iShares MSCI EAFE ETF (15% weight) and iShares MSCI Emerging Markets ETF (15% weight)
|
| Amount: | $1,821,000
|
| Maturity: | Oct. 6, 2017
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 150% of any basket gain, capped at 35%; par for losses up to 10% and exposure to losses beyond buffer
|
| Initial basket level: | 100
|
| Initial ETF prices: | $187.04 for SPDR S&P 500, $116.34 for iShares Russell, $67.17 for iShares MSCI EAFE and $40.99 for iShares MSCI EM
|
| Pricing date: | March 31
|
| Settlement date: | April 3
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | 1.325%
|
| Cusip: | 94986RTF8
|
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