Published on 5/27/2016 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $14.66 million market-linked notes on Russell, S&P
By Marisa Wong
Morgantown, W.Va., May 27 – Wells Fargo & Co. priced $14.66 million of market-linked securities – callable with contingent coupon and contingent downside due June 1, 2026 linked to the lowest performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 8.5% if each index closes above its 70% coupon threshold level on the observation date for that quarter.
The notes are callable quarterly after one year.
The payout at maturity will be par plus the final coupon unless either index finishes below the 50% downside threshold, in which case investors will be fully exposed to any losses of worse performing index.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Market-linked securities – callable with contingent coupon and contingent downside
|
| Underlying index: | Russell 2000 and S&P 500
|
| Amount: | $14,662,000
|
| Maturity: | June 1, 2026
|
| Coupon: | 8.5%, payable quarterly if each index closes above its 70% coupon threshold on observation date for that quarter.
|
| Price: | Par
|
| Payout at maturity: | Par unless either index falls by more than 50%, in which case full exposure to any losses of worse performing index
|
| Call option: | Quarterly after one year
|
| Initial level: | 2,090.54 for S&P, 1,141.024 for Russell
|
| Coupon thresholds: | 1,463.378 for S&P, 798.7168 for Russell; 70% of initial levels
|
| Downside thresholds: | 1,045.27 for S&P, 570.512 for Russell; 50% of initial levels
|
| Pricing date: | May 25
|
| Settlement date: | May 31
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | 4.5%
|
| Cusip: | 94986RM40
|
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