Published on 3/27/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $4.7 million 11.8% contingent market-linked autocalls on stocks
By Tali Rackner
Minneapolis, March 27 – Wells Fargo & Co. priced $4.7 million of market-linked securities due Feb. 26, 2021 – autocallable with contingent coupon and contingent downside linked to the least performing of the common stock of Boeing Co., the class B common stock of CBS Corp. and the common stocks of Walmart Inc. and Deere & 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 11.8% if each stock closes at or above its 60% downside threshold on the observation date for that month.
The notes will be called at par if each stock closes at or above its 95% call threshold price on any quarterly observation date beginning in August.
The payout at maturity will be par unless any stock finishes below its 60% threshold, in which case the payout will be par plus the return of the least-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: | Boeing Co., CBS Corp., Walmart Inc., Deere & Co.
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| Amount: | $4,704,000
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| Maturity: | Feb. 26, 2021
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| Coupon: | 11.8% annualized, payable monthly if each stock closes at or above 60% downside 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 60%, in which case 1% loss per 1% decline of least-performing stock
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| Call: | At par if each stock closes at or above 95% call threshold price on any quarterly review date beginning in August
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| Initial levels: | $356.66 for Boeing, $55.12 for CBS, $92.89 for Walmart and $166.24 for Deere
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| Call thresholds: | $338.827 for Boeing, $52.364 for CBS, $88.2455 for Walmart and $157.928 for Deere; 95% of initial levels
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| Downside thresholds: | $213.996 for Boeing, $33.072 for CBS, $55.734 for Walmart and $99.744 for Deere; 60% of initial levels
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| Pricing date: | Feb. 23
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| Settlement date: | Feb. 28
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 3.9%
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| Cusip: | 95001B2B9
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