Published on 1/4/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $5.28 million contingent market-linked autocalls on Russell, Stoxx
By Wendy Van Sickle
Columbus, Ohio, Jan. 4 – Wells Fargo & Co. priced $5.28 million of market-linked securities due Dec. 30, 2027 – autocallable with contingent coupon and contingent downside linked to the least performing of the Euro Stoxx 50 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 8.25% if each index closes at or above its 75% coupon threshold on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date a year.
The payout at maturity will be par unless either index finishes below its 50% downside threshold, 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.
|
| Issue: | Market-linked securities – autocallable with contingent coupon and contingent downside
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| Underlying indexes: | Euro Stoxx 50 and Russell 2000
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| Amount: | $5,283,000
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| Maturity: | Dec. 30, 2027
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| Coupon: | 8.25%, payable quarterly at annualized rate if each index closes at or above coupon threshold on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either index falls by more than 50%, in which investors will receive par plus return of the worst performing index with 1% loss per 1% decline
|
| Call: | At par if each index closes at or above its initial level on any interest payment date from December 2018 to September 2027
|
| Initial levels: | 3,550.17 for Stoxx, 1,543.937 for Russell
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| Coupon thresholds: | 2,662.6275 for Stoxx, 1,157.95275 for Russell; 75% of initial levels
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| Downside thresholds: | 1,775.085 for Stoxx, 771.9685 for Russell; 50% of initial levels
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| Pricing date: | Dec. 27
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| Settlement date: | Dec. 29
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| Agent: | Wells Fargo Securities LLC
|
| Fees: | 4.1%
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| Cusip: | 95000E4M8
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