Published on 4/11/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $1.72 million market-linked callable notes on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, April 11 – Wells Fargo & Co. priced $1.72 million of 0% market-linked securities – callable with contingent coupon and contingent downside due March 31, 2025 linked to 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 if each index closes at or above its coupon threshold, 70% of its initial level, on an observation date for that quarter. The annual rate will be 7.1% for the first four years and 10.1% for years five through eight.
The notes are callable at par on any observation date after one year.
The payout at maturity will be par unless either index finishes below its 60% 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.
|
| Issue: | Market-linked securities – callable with contingent coupon and contingent downside
|
| Underlying indexes: | S&P 500, Russell 2000
|
| Amount: | $1,723,000
|
| Maturity: | March 31, 2025
|
| Coupon: | 7.1% for first four years, 10.1% for years five through eight, payable quarterly if each index closes at or above its 70% coupon threshold on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either index closes below 60% downside threshold, in which case full exposure to any losses of worse performing index
|
| Initial levels: | 2,361.13 for S&P, 1,371.645 for Russell
|
| Coupon thresholds: | 1,652.791 for S&P, 960.1515 for Russell; 70% of initial levels
|
| Downside thresholds: | 1,416.678 for S&P, 822.987 for Russell; 60% of initial levels
|
| Call option: | At par on any observation date after one year
|
| Pricing date: | March 29
|
| Settlement date: | March 31
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | 4%
|
| Cusip: | 94986RU42
|
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