By Susanna Moon
Chicago, Oct. 6 – Wells Fargo & Co. priced $1 million of market-linked securities due Oct. 4, 2021 – callable with contingent coupon and contingent downside 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 of 7% if each index closes at or above its 65% coupon threshold on the observation date for that quarter.
The notes are callable at par on any interest payment date after one year.
The payout at maturity will be par unless either index finishes below its 65% downside threshold, 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.
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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: | $1 million
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Maturity: | Oct. 4, 2027
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Coupon: | 7% annualized, payable quarterly if each index closes at or above 65% 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 35%, in which investors will receive par plus return of worse performing index
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Call option: | At par on any interest payment date from September 2018 through June 2027
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Initial levels: | 2,510.06 for S&P, 1,488.786 for Russell
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Thresholds: | 1,631.539 for S&P, 967.7109 for Russell; 65% of initial levels
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Pricing date: | Sept. 28
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Settlement date: | Oct. 3
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Agent: | Wells Fargo Securities LLC
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Fees: | 2.5%
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Cusip: | 95000E3P2
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