Published on 6/22/2016 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $2.67 million market-linked notes on Stoxx, Russell
By Tali Rackner
Norfolk, Va., June 22 – Wells Fargo & Co. priced $2.67 million of market-linked securities – callable with contingent coupon and contingent downside due June 23, 2026, linked to the Euro Stoxx 50 index and the Russell 2000 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 10.8% if each index closes at or above its coupon threshold level, 75% of its initial level, on the observation date for that quarter.
The notes are callable at par on any quarterly observation date after one year.
The payout at maturity will be par unless either index finishes below its 50% downside threshold level, in which case the payout will be par plus the return of the worse performing index with full exposure to any losses.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Wells Fargo & Co.
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| Issue: | Market-linked securities – callable with contingent coupon and contingent downside
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| Underlying index: | Euro Stoxx 50, Russell 2000
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| Amount: | $2,668,000
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| Maturity: | June 23, 2026
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| Coupon: | 10.8%, payable quarterly if each index closes above its 75% coupon threshold on observation date for that quarter.
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| Price: | Par of $1,000
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| Payout at maturity: | Par unless either index falls by more than 50%, in which case full exposure to any losses of worse performing index
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| Call option: | Quarterly after one year
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| Initial level: | 2,849.17 for Euro Stoxx, 1,144.698 for Russell
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| Coupon thresholds: | 2,136.8775 for Euro Stoxx, 858.5235 for Russell; 75% of initial levels
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| Downside thresholds: | 1,424.585 for Euro Stoxx, 572.349 for Russell; 50% of initial levels
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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: | 94986RN80
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