Published on 8/30/2016 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $8.08 million market-linked notes tied to S&P 500
By Wendy Van Sickle
Columbus, Ohio, Aug. 30 – Wells Fargo & Co. priced $8.08 million of 0% market-linked securities – callable with contingent coupon and contingent downside due Aug. 29, 2031 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 7.85% if the index closes at or above its coupon threshold level, 70% of its initial level, on the observation date for that month.
The notes are callable at par on any quarterly observation date after one year.
The payout at maturity will be par unless the index finishes below its 50% downside threshold level, in which case investors will have 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 Underlying index: | S&P 500
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Amount: | $8,082,000
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Maturity: | Aug. 29, 2031
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Coupon: | 7.85%, payable monthly if index closes above coupon threshold on observation date for that month
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Price: | Par
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Payout at maturity: | Par unless index closes below 50% downside threshold, in which case full exposure to index decline
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Initial level: | 2,169.04
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Coupon threshold: | 1,518.328, 70% of initial level
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Threshold level: | 1,084.52, 50% of initial level
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Call option: | At par on any coupon payment date after one year
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Pricing date: | Aug. 26
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Settlement date: | Aug. 31
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Agent: | Wells Fargo Securities LLC
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Fees: | 3%
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Cusip: | 94986RT43
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