Published on 2/9/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $1.65 million market-linked contingent coupon notes on index, fund
By Wendy Van Sickle
Columbus, Ohio, Feb. 9 – Wells Fargo & Co. priced $1.65 million of market-linked securities due Feb. 7, 2028 – callable with contingent coupon and contingent downside linked to the lesser performing of the iShares MSCI Emerging Markets exchange-traded fund and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly at an annual rate of 9.4% if the lesser performing underlying component closes above its coupon threshold, 75% of its initial level, on the observation day that quarter.
The notes are callable at par on a quarterly basis beginning in February 2019.
The payout at maturity will be par unless either underlying component finishes below its 60% downside threshold, in which case investors will lose 1% loss per 1% decline of the worse performing asset.
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 assets: | iShares MSCI Emerging Markets ETF and Euro Stoxx 50 index
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| Amount: | $1.65 million
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| Maturity: | Feb. 7, 2028
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| Coupon: | 9.4% annualized, payable quarterly if each underlying component closes above coupon threshold on observation date
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| Price: | Par
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| Call option: | Quarterly at par beginning in February 2019
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| Payout at maturity: | Par unless either asset falls by more than 40%, in which case 1% loss per 1% decline of worse performing asset
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| Initial levels: | $49.05 for fund, 3,523.28 for Stoxx
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| Coupon thresholds: | $36.7875 for fund, 2,642.46 for Stoxx; 75% of initial levels
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| Downside thresholds: | $29.43 for fund, 2,113.968 for Stoxx; 60% of initial levels
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| Pricing date: | Feb. 2
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| Settlement date: | Feb. 7
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4%
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| Cusip: | 95001B2A1
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