Published on 5/16/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $612,000 7.3% contingent market-linked autocallables tied to indexes
By Susanna Moon
Chicago, May 16 – Wells Fargo & Co. priced $612,000 of market-linked securities due May 8, 2023 – callable with contingent coupon and contingent downside linked to the least performing of the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 7.3% if each index closes at or above its 70% coupon threshold on the observation date for that month.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date after one year.
The payout at maturity will be par unless any 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.
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| Issue: | Market linked securities – autocallable with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $612,000
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| Maturity: | May 8, 2023
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| Coupon: | 7.3% annualized, payable monthly if each index closes at or above 70% coupon threshold on observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless any index falls by more than 50%, in which case 1% loss per 1% decline of worst performing index
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| Call: | At par if each index closes at or above its initial level on any interest payment date from May 2019 to February 2023
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| Initial levels: | 2,629.73 for S&P, 1,546.558 for Russell and 23,930.15 for Dow
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| Coupon thresholds: | 1,840.811 for S&P, 1,082.5906 for Russell and 16,751.105 for Dow; 70% of initial levels
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| Downside thresholds: | 1,314.865 for S&P, 773.279 for Russell and 11,965.075 for Dow; 50% of initial levels
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| Pricing date: | May 3
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| Settlement date: | May 8
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 0.5%
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| Cusip: | 95001B3W2
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