Wells Fargo plans 8% equity-linked notes tied to Archer-Daniels-Midland

By Angela McDaniels

Tacoma, Wash., Sept. 4 – Wells Fargo & Co. plans to price 8% equity-linked securities due August 2015 linked to the common stock of Archer-Daniels-Midland Co., 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 Archer-Daniels-Midland 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, the settlement amount will be par plus (a) the upside participation rate multiplied by the result of (b) the final share price minus the upside participation threshold. The upside participation threshold will be greater than the initial share price, and the upside participation rate will be less than 100%.

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. The principal return threshold will be greater than the initial share price but less than the upside participation threshold.

If the final share price is less than the principal return threshold, the settlement amount will be the downside exchange ratio multiplied by the final share price, provided that the payout will not be less than a minimum repayment amount. The downside exchange ratio will be the initial share price divided by the principal return threshold.

Wells Fargo Securities, LLC is the agent.

The notes are expected to price and settle in September.

The Cusip number is 949746333.

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