By Angela McDaniels
Tacoma, Wash., Sept. 5 – Wells Fargo & Co. priced $75 million of 8% equity-linked securities due Aug. 28, 2015 linked to the common stock of Archer-Daniels-Midland Co., according to an FWP filing with the Securities and Exchange Commission.
Interest is payable monthly.
The face amount of each security is $50.1954, which is 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, 110.5% of the initial share price, the settlement amount will be par plus 65% of the amount by which the final share price exceeds the upside participation threshold.
If the final share price is greater than or equal to the principal return threshold, 108.5% of the initial share price, 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 0.9217 multiplied by the final share price, provided that the payout will not be less than $39.3231 per note.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Equity-linked securities
|
| Underlying stock: | Archer-Daniels-Midland Co. (Symbol: ADM)
|
| Amount: | $74,999,958.86
|
| Maturity: | Aug. 28, 2015
|
| Coupon: | 8%, payable monthly
|
| Price: | Par of $50.1954
|
| Payout at maturity: | A number of Archer-Daniels-Midland shares equal to settlement amount divided by final share price or, at issuer’s option, cash amount equal to settlement amount
|
| Settlement amount: | If final share price is greater than upside participation threshold, par plus 65% of amount by which final share price exceeds upside participation threshold; if final share price is greater than or equal to principal return threshold and less than or equal to upside participation threshold, par; if final share price is less than principal return threshold, 0.9217 multiplied by final share price, subject to minimum payout of $39.3231 per note
|
| Initial share price: | $50.1954
|
| Upside participation threshold: | $55.4659, 110.5% of initial share price
|
| Principal return threshold: | $54.4620, 108.5% of initial share price
|
| Downside exchange ratio: 0.9217 (initial share price divided by principal return threshold)
|
| Pricing date: | Sept. 5
|
| Settlement date: | Sept. 11
|
| Underwriter: | Wells Fargo Securities, LLC
|
| Fees: | None
|
| Cusip: | 949746333
|
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