Published on 7/20/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo prices $5.7 million 11.25% contingent market-linked autocalls on stocks
By Susanna Moon
Chicago, July 13 – Wells Fargo & Co. priced $5.7 million of market-linked securities due July 21, 2021 – autocallable with contingent coupon and contingent downside linked to the lowest performing of the common stocks of Lowe’s Cos., Inc., Delta Air Lines, Inc., JPMorgan Chase & Co. and Intel Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 11.25% if each stock closes at or above its 60% coupon 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 on any observation date from January 2019 to April 2021.
The payout at maturity will be par unless any stock finishes below its 60% downside threshold, in which case the payout will be par plus the return with full exposure to any losses to the worst performing stock.
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: | Lowe’s Cos., Inc. (Symbol: LOW), Intel Corp. (Symbol: INTC), Delta Air Lines, Inc. (Symbol: DAL) and JPMorgan Chase & Co. (Symbol: JPM)
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| Amount: | $5,698,000
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| Maturity: | July 21, 2021
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| Coupon: | 11.25% annualized, payable monthly if each stock closes at or above 65% coupon 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 40%, 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 its 95% call level on any interest payment date from January 2019 to April 2021
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| Initial levels: | $99.63 for Lowe’s, $52.01 for Intel, $50.67 for Delta and $110.58 for JPMorgan
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| Downside thresholds: | $59.778 for Lowe’s, $31.206 for Intel, $30.402 for Delta and $66.348 for JPMorgan; 60% of initial levels
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| Pricing date: | July 16
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| Settlement date: | July 19
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 3.9%
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| Cusip: | 95001B4Z4
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