By Angela McDaniels
Tacoma, Wash., April 24 – Wells Fargo & Co. priced $3.5 million of autocallable access securities with contingent coupon and contingent downside due Jan. 27, 2017 linked to the SPDR S&P Homebuilders exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 5.75% per year if the ETF closes at or above the threshold share price, 70% of the initial share price, on the calculation date for that quarter.
The notes will be automatically called at par plus the contingent coupon if the ETF closes at or above the initial share price on any of the first six quarterly calculation dates.
If the notes are not called and the ETF's final share price is greater than or equal to the threshold share price, the payout at maturity will be par. Otherwise, investors will be fully exposed to the ETF's decline from the initial share price.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Autocallable access securities with contingent coupon and contingent downside Underlying ETF: | SPDR S&P Homebuilders ETF
|
| Amount: | $3.5 million
|
| Maturity: | Jan. 27, 2017
|
| Coupon: | 5.75% per year, payable quarterly if ETF closes at or above threshold share price on calculation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If ETF's final share price is greater than or equal to threshold share price, par; otherwise, full exposure to ETF's decline from initial share price
|
| Call: | Automatically at par plus contingent coupon if ETF closes at or above initial share price on any of first six quarterly calculation dates
|
| Initial share price: | $35.91
|
| Threshold price: | $25.137, 70% of initial share price
|
| Pricing date: | April 22
|
| Settlement date: | April 29
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | None
|
| Cusip: | 94986RWV9
|
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