Wells Fargo plans to price market-linked securities on ETF basket

By Marisa Wong

Madison, Wis., May 2 - Wells Fargo & Co. plans to price 0% market-linked securities with leveraged upside participation to a cap and fixed percentage buffered downside due Dec. 7, 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, the 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% to 40% that will be set at pricing.

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.

The notes will price May 30 and settle June 6.

The Cusip number is 94986RTX9.

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