Published on 4/12/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $1.67 million market-linked callable notes on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, April 12 – Wells Fargo & Co. priced $1.67 million of 0% market-linked securities – callable with contingent coupon and contingent downside due April 5, 2027 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 8% if each index closes at or above its coupon threshold, 65% of its initial level, on an observation date for that quarter.
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 50% 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
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| Underlying indexes: | S&P 500, Russell 2000
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| Amount: | $1,665,000
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| Maturity: | April 5, 2027
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| Coupon: | 8%, payable quarterly if each index closes at or above its 65% 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: | 2,362.72 for S&P, 1,385.920 for Russell
|
| Coupon thresholds: | 1,535.768 for S&P, 900.848 for Russell; 65% of initial levels
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| Downside thresholds: | 1,181.36 for S&P, 692.96 for Russell; 50% of initial levels
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| Call option: | At par on any observation date after one year
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| Pricing date: | March 31
|
| Settlement date: | April 5
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | 2%
|
| Cusip: | 94986R5F4
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