By Toni Weeks
San Luis Obispo, Calif., June 26 – Wells Fargo & Co. priced $40 million of 8% equity-linked securities due June 18, 2015 linked to the common stock of Micron Technology, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
The face amount of each security will be equal to the initial share price.
The payout at maturity will be, at the issuer's option, a number of Micron Technology shares equal to the settlement amount divided by the final share price or an amount in cash equal to the settlement amount.
If the final share price is greater than the upside participation threshold, 113% of the initial share price, the settlement amount will be par plus (a) the 65% upside participation rate multiplied by the result of (b) the final share price minus the upside participation threshold.
If the final share price is greater than or equal to the principal return threshold and less than or equal to the upside participation threshold, the settlement amount will be par.
If the final share price is less than the principal return threshold, the settlement amount will be the 0.8929 downside exchange ratio multiplied by the final share price, provided that the payout will not be less than a minimum repayment amount of $23.1643. The downside exchange ratio is the initial share price divided by the principal return threshold.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Equity-linked securities
|
| Underlying stock: | Micron Technology, Inc. (Symbol: MU)
|
| Amount: | $40,001,664.90
|
| Maturity: | June 18, 2015
|
| Coupon: | 8%, payable monthly
|
| Price: | Par of $32.4294
|
| Payout at maturity: | A number of Micron shares equal to settlement amount divided by final share price or equivalent cash amount
|
| Settlement amount: | Par plus 0.65 times the difference of the final stock price and the upside participation threshold if stock closes greater than upside participation threshold; par if the final share price is greater than or equal to the principal return threshold and less than or equal to the upside participation threshold; 0.8929 downside exchange ratio multiplied by final share price if final share price is less than principal return threshold, subject to $23.1643 minimum repayment amount
|
| Initial share price: | $32.4294
|
| Upside participation threshold: | $36.6452, 113% of initial price
|
| Principal return threshold: | $36.3209, 112% of initial price
|
| Downside exchange ratio: | 0.8929 (initial stock price divided by principal return threshold)
|
| Pricing date: | June 24
|
| Settlement date: | July 1
|
| Underwriter: | Wells Fargo Securities, LLC
|
| Fees: | None
|
| Cusip: | 949746424
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
