Wells Fargo plans notes exchangeable for International Paper, Veritiv

By Angela McDaniels

Tacoma, Wash., July 16 – Wells Fargo & Co. plans to price 0% optionally exchangeable securities due June 10, 2020 exchangeable for a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket components are International Paper Co. with a 98.56% weight and Veritiv Corp. with a 1.44% weight.

Each $1,000 principal amount of notes will be exchangeable at any time for 16.36884 shares of International Paper and 0.31295 shares of Veritiv or, at the issuer’s option, a cash amount equal to the value of those shares.

At Wednesday’s closing share prices, 16.36884 International Paper shares and 0.31295 Veritiv shares would be worth a combined $831.96.

Beginning June 10, 2018, the notes will be callable at any time.

The payout at maturity or upon redemption will be the greater of par and parity, which on any day is the sum of the products of the closing price of each basket stock on that day and its exchange ratio.

Wells Fargo Securities LLC is the agent.

The notes will price and settle in July.

The Cusip number is 94986RUH2.

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