Published on 7/8/2016 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $2.85 million market-linked notes tied to two indexes
By Marisa Wong
Morgantown, W.Va., July 8 – Wells Fargo & Co. priced $2.85 million of 0% market-linked securities – callable with contingent coupon and contingent downside due July 8, 2021 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 7% if each index closes at or above its 60% 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, if any, 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.
|
| Issue: | Market-linked securities – callable with contingent coupon and contingent downside
|
| Underlying indexes: | S&P 500, Russell 2000
|
| Amount: | $2,847,000
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| Maturity: | July 8, 2021
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| Coupon: | 7%, payable quarterly if each index closes at or above its coupon threshold on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either index closes below 50% downside threshold, in which case full exposure to any losses of worse performing index
|
| Initial levels: | 2,102.95 for S&P, 1,156.770 for Russell
|
| Coupon thresholds: | 1,261.77 for S&P, 694.062 for Russell; 60% of initial levels
|
| Downside thresholds: | 1,051.475 for S&P, 578.385 for Russell; 50% of initial levels
|
| Call option: | At par on any coupon payment date after one year
|
| Pricing date: | July 1
|
| Settlement date: | July 7
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | 1.25%
|
| Cusip: | 94986RQ53
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