Published on 12/29/2016 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $245,000 market-linked notes on S&P, Russell
By Tali Rackner
Norfolk, Va., Dec. 29 – Wells Fargo & Co. priced $245,000 of market-linked securities due Dec. 31, 2026 – callable with contingent coupon and contingent downside linked to the lesser performing of the S&P 500 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 8% if each index closes at or above its coupon threshold level, 70% of its initial level, on the observation date for that quarter.
The notes will be callable quarterly at par 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 lesser-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 indexes: | S&P 500, Russell 2000
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| Amount: | $245,000
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| Maturity: | Dec. 31, 2026
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| Coupon: | 8%, payable quarterly if each index closes at or above its 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 threshold, in which case full exposure to any losses of lesser-performing index
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| Initial levels: | 2,268.88 for S&P, 1,377.707 for Russell
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| Coupon threshold levels: | 1,588.216 for S&P, 964.3949 for Russell; 70% of initial levels
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| Downside threshold levels: | 1,134.44 for S&P, 688.8535 for Russell; 50% of initial levels
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| Call option: | After one year, quarterly at par
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| Pricing date: | Dec. 27
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| Settlement date: | Dec. 30
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4.5%
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| Cusip: | 94986R2X8
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