By Wendy Van Sickle
Columbus Ohio, Aug. 21 – Wells Fargo & Co. priced $1.83 million of market-linked securities due Aug. 19, 2021 – autocallable with contingent coupon and contingent downside linked to the lowest performing of the common stocks of Philip Morris International Inc. and Altria Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.75% if each stock closes at or above its 60% coupon threshold on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial level on any observation date from February 2019 to May 2021.
The payout at maturity will be par unless either 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 worse 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: | Philip Morris International Inc., Altria Group, Inc.
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| Amount: | $1,827,000
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| Maturity: | Aug. 19, 2021
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| Coupon: | 8.75% annualized, payable quarterly if each stock closes at or above 60% coupon threshold on observation date
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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 initial level on any interest payment date from February 2019 to May 2021
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| Initial levels: | $60.18 for Philip Morris and $83.41 for Altria
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| Downside thresholds: | $50.046 for Philip Morris and $36.108 for Altria; 60% of initial levels
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| Pricing date: | Aug. 15
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| Settlement date: | Aug. 20
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 2.5%
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| Cusip: | 95001B5Y6
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