Published on 6/8/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $310,000 market-linked autocallables tied to indexes
By Susanna Moon
Chicago, June 8 – Wells Fargo & Co. priced $310,000 of 0% market linked securities –callable with contingent coupon and contingent downside due June 2, 2025 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 if each index closes at or above the 75% coupon threshold on the observation date for that quarter. The contingent coupon will be 7% for the first four years, stepping up to 10% on August 2021.
The notes are callable at par on any quarterly review date after one year.
The payout at maturity will be par unless either index falls below the 60% downside threshold, in which case investors will be exposed to any losses of the worse performing index.
| 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: | $310,000
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| Maturity: | June 2, 2025
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| Coupon: | 7% annualized initially, stepping up to 10% on August 2021, payable quarterly if each index closes at or above 75% coupon threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either index falls by more than 40%, in which case fully exposure to any losses of worst performing index
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| Call option: | At par on any quarterly observation date after one year
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| Initial index levels: | 2,415.07 for S&P, 1,383.388 for Russell
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| Coupon thresholds: | 1,811.3025 for S&P, 1,037.541 for Russell, 75% of initial levels
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| Downside thresholds: | 1,449.042 for S&P, 830.0328 for Russell, 60% of initial levels
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| Pricing date: | May 25
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| Settlement date: | May 31
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4%
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| Cusip: | 94986R5V9
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