By Marisa Wong
Morgantown, W.Va., April 21 – Wells Fargo & Co. priced $8.86 million of 0% autocallable securities with buffered downside due April 25, 2019 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par plus a call premium if the index closes at or above the initial index level on either of two call observation dates. The premium is 6.64083% if the notes are called on May 19, 2017 and 12.26% if the notes are called on April 19, 2018.
If the notes are not called and the final index level is greater than or equal to the initial level, the payout at maturity will be par plus 18.39%.
If the index return is negative but not less than negative 10%, the payout will be par.
If the index return is less than negative 10%, investors will lose 1.1111% for every 1% decline beyond the 10% buffer.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Autocallable securities with buffered downside
|
| Underlying index: | S&P 500
|
| Amount: | $8,857,000
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| Maturity: | April 25, 2019
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index return is zero or positive, par plus 18.39%; if index return is negative but not less than negative 10%, par; otherwise, 1.1111% loss for every 1% decline beyond 10%
|
| Call: | Automatically at par plus a call premium if the index closes at or above the initial index level on either of two call observation dates; premium is 6.64083% if the notes are called on May 19, 2017 and 12.26% if the notes are called on April 19, 2018
|
| Initial level: | 2,100.80
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| Threshold level: | 1,890.72, 90% of initial level
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| Pricing date: | April 19
|
| Settlement date: | April 26
|
| Underwriter: | Wells Fargo Securities LLC
|
| Fees: | 3%
|
| Cusip: | 94986RK59
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