Published on 7/10/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $3 million market-linked callable notes on S&P, Russell
By Susanna Moon
Chicago, July 10 – Wells Fargo & Co. priced $3 million of 0% market-linked securities – callable with contingent coupon and contingent downside due July 2, 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 if each index closes at or above its 67.5% coupon threshold on an observation date for that quarter. The coupon will be 7.125% for the first five years, stepping up to 10% in September 2022.
The notes are callable in whole but not in part at par on any coupon payment date after one year.
The payout at maturity will be par unless either index finishes below its 60% downside threshold, in which case investors will lose 1% for each 1% decline of the worse performing index.
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: | $3 million
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| Maturity: | July 2, 2027
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| Coupon: | 7.125% initially, stepping up to 10% in September 2022, payable quarterly, if each index closes at or above its 67.5% 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 60% downside threshold, in which case 1% loss for each 1% decline of worse performing index
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| Call option: | At par on any coupon payment date after one year
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| Initial levels: | 2,419.38 for S&P, 1,403.522 for Russell
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| Coupon thresholds: | 1,633.0815 for S&P, 947.37735 for Russell; 67.5% of initial levels
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| Downside thresholds: | 1,451.628 for S&P, 842.1132 for Russell; 60% of initial levels
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| Pricing date: | June 27
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| Settlement date: | June 30
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4.5%
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| Cusip: | 94986R6R7
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