Wells Fargo plans callable contingent coupon notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., June 28 – Wells Fargo & Co. plans to price callable market-linked securities with contingent coupon and contingent downside due July 31, 2031 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon if the index closes at or above its coupon threshold level, 70% of its initial level, on the calculation day for that month. The contingent coupon rate is expected to be 7.75% to 8.25% per year and will be set at pricing.

Beginning in July 2017, the notes will be callable at par on any monthly interest payment date.

If the index’s final level is greater than or equal to its threshold level, 50% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final index level is less than the initial index level.

Wells Fargo Securities LLC is the agent.

The notes will price July 26.

The Cusip number is 94986RQ38.

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