Published on 7/31/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $425,000 market-tied contingent coupon callables on indexes
By Wendy Van Sickle
Columbus, Ohio, July 31 – Wells Fargo & Co. priced $425,000 of market-linked securities – callable with contingent coupon and contingent downside due July 29, 2027 linked to the least 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 its coupon threshold level, 67.5% of its initial level, on the observation date for that quarter. The coupon rate is 7.125% for the first five years and 9% thereafter.
The notes are callable at par on any observation date after a year.
The payout at maturity will be par unless either index finishes below its 60% threshold level, in which case the payout will be par plus the return of the worst 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 index, Russell 2000
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| Amount: | $425,000
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| Maturity: | July 29, 2027
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| Coupon: | Payable quarterly at annualized rate if each index closes at or above coupon threshold level on observation date for that quarter; coupon rate is 7.125% for first five years and 9% thereafter
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| Price: | Par
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| Call option: | At par plus contingent coupon on any quarterly observation date after a year
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| Payout at maturity: | Par unless either index falls by more than 40%, in which case par plus return of the worse performing index
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| Initial index levels: | 2,477.83 for S&P, 1,442.279 for Russell
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| Coupon thresholds: | 1,672.53525 for S&P, 973.538325 for Russell; 67.5% of initial levels
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| Downside thresholds: | 1,486.698 for S&P, 865.3674 for Russell; 60% of initial levels
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| Pricing date: | July 26
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| Settlement date: | July 31
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4.5%
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| Cusip: | 94986R7M7
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