Published on 1/2/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $8.84 million 12.2% contingent market-linked autocalls on stocks
By Susanna Moon
Chicago, Jan. 2 – Wells Fargo & Co. priced $8.84 million market-linked securities due Dec. 24, 2020 – autocallable with contingent coupon and contingent downside linked to the least performing of the common stocks of Lowe’s Cos., Inc., Intel Corp., Delta Air Lines, Inc. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of at least 12.2% if each stock closes at or above its 60% coupon threshold on the observation date for that month.
The notes will be called at par if each index closes at or above its 95% call threshold on any quarterly observation date after six months.
The payout at maturity will be par unless any stock finishes below its 60% downside threshold, in which case the payout will be par plus the return of the worst performing stock 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 – autocallable with contingent coupon and contingent downside
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| Underlying stocks: | Lowe’s Cos., Inc. (Symbol: LOW), Intel Corp. (Symbol: INTC), Delta Air Lines, Inc. (Symbol: DAL) and JPMorgan Chase & Co. (Symbol: JPM)
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| Amount: | $8,841,000
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| Maturity: | Dec. 24, 2020
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| Coupon: | 12.2% annualized, payable monthly if each stock closes at or above 60% coupon threshold on observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless any stock falls by more than 40%, in which investors will receive par plus return of worst performing index with 1% loss per 1% decline
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| Call: | At par if each stock closes at or above its 95% call level on any quarterly review date from June 2018 through September 2020
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| Initial levels: | $90.73 for Lowe’s, $46.76 for Intel, $56.03 for Delta and $107.83 for JPMorgan
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| Thresholds: | $54.438 for Lowe’s, $28.056 for Intel, $33.618 for Delta and $64.698 for JPMorgan; 60% of initial levels
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| Pricing date: | Dec. 21
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| Settlement date: | Dec. 27
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 3.9%
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| Cusip: | 95000E4S5
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