Published on 9/28/2017 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $2.39 million contingent coupon notes linked to indexes
By Angela McDaniels
Tacoma, Wash., Sept. 28 – Wells Fargo & Co. priced $2.39 million of callable market-linked securities with contingent coupon and contingent downside due Sept. 30, 2027 linked to the lowest performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon if each index closes at or above its coupon threshold level, 75% of its initial level, on the calculation day for that quarter. The contingent coupon rate is 9% per year in years one through five and 12% per year in years six through 10.
If each index’s final level is greater than or equal to its downside threshold level, 50% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final level of the worst-performing index is less than its initial index level.
Beginning one year after the issue date, the notes will be callable quarterly at par.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo & Co.
|
| Issue: | Callable market-linked securities with contingent coupon and contingent downside
|
| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
|
| Amount: | $2,387,000
|
| Maturity: | Sept. 30, 2027
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| Coupon: | Contingent coupon payable quarterly if each index closes at or above coupon threshold level on calculation day for that quarter; contingent coupon rate is 9% per year in years one through five and 12% per year in years six through 10
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par; otherwise, 1% loss for every 1% that worst-performing index’s final level is less than initial level
|
| Call option: | Beginning one year after issue date, notes will be callable quarterly at par
|
| Initial index levels: | 2,496.84 for S&P 500, 1,456.863 for Russell 2000 and 3,536.38 for Euro Stoxx 50
|
| Coupon thresholds: | 1,872.63 for S&P 500, 1,092.64725 for Russell 2000 and 2,652.285 for Euro Stoxx 50; 75% of initial levels
|
| Downside thresholds: | 1,248.42 for S&P 500, 728.4315 for Russell 2000 and 1,768.19 for Euro Stoxx 50; 50% of initial level
|
| Pricing date: | Sept. 26
|
| Settlement date: | Sept. 29
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| Agent: | Wells Fargo Securities LLC
|
| Fees: | 4.4%
|
| Cusip: | 95000E2U2
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