Published on 6/27/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $1.24 million contingent market-linked autocalls on stocks
By Wendy Van Sickle
Columbus, Ohio, June 27 – Wells Fargo & Co. priced $1.24 million of market-linked securities due July 1, 2021 – autocallable with contingent coupon and contingent downside linked to the least performing of the shares of Advance Auto Parts, Inc., AbbVie Inc., Applied Materials, Inc. and CarMax, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 13.3% if each stock closes at or above its 55% threshold on the observation date for that month.
The notes will be called at par if each stock closes at or above 90% of its initial level on any quarterly observation date after six months.
The payout at maturity will be par unless any stock finishes below its 55% 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: | Advance Auto Parts, Inc., AbbVie Inc., Applied Materials, Inc. and CarMax, Inc.
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| Amount: | $1,235,000
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| Maturity: | July 1, 2021
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| Coupon: | 13.3% annualized, payable monthly if each stock closes at or above 55% 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 45%, in which case 1% loss per 1% decline of worst performing stock
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| Call: | At par if each stock closes at or above 90% of initial level on any quarterly review date beginning in December 2018
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| Initial levels: | $139.16 for Advance Auto, $98.25 for AbbVie, $48.58 for Applied Materials and $72.77 for CarMax
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| Thresholds: | $76.538 for Advance Auto, $54.0375 for AbbVie, $26.719 for Applied Materials and $40.0235 for CarMax; 55% of initial levels
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| Pricing date: | June 20
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| Settlement date: | June 29
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4.15%
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| Cusip: | 95001B4H4
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