Published on 6/22/2016 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $4.62 million market-linked contingent coupon callable notes on indexes
By Susanna Moon
Chicago, June 22 – Wells Fargo & Co. priced $4.62 million of 0% market-linked callable securities with contingent coupon and contingent downside due June 23, 2026 linked to 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 contingent quarterly coupon at an annual rate of 8.75% if each index closes above its 70% coupon threshold level on the observation date for that quarter.
The notes are callable at par plus the contingent coupon on any interest payment date after one year.
The payout at maturity will be par plus the final coupon unless either index closes below the 50% downside threshold level, in which case investors will be fully exposed to any losses of the worse performing index.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Wells Fargo & Co.
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| Issue: | Market-linked securities – callable contingent coupon and contingent downside
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| Underlying indexes: | S&P 500, Russell 2000
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| Amount: | $4,618,000
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| Maturity: | June 23, 2026
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| Coupon: | 8.75%, payable quarterly if each index closes above its 70% coupon threshold on observation date for that quarter.
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| Price: | Par
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| Payout at maturity: | Par unless either index closes below 50% downside threshold, in which case full exposure to any losses of worse performing index
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| Initial levels: | 2,071.22 for S&P, 1,144.698 for Russell
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| Coupon thresholds: | 1,449.854 for S&P, 801.2886 for Russell; 70% of initial levels
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| Downside thresholds: | 1,035.61 for S&P, 572.349 for Russell; 50% of initial levels
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| Call option: | At par on any coupon payment date after one year
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| Pricing date: | June 17
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| Settlement date: | June 22
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4.75%
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| Cusip: | 94986RN72
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