Published on 11/21/2018 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $1.3 million callable market-linked contingent notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Nov. 21 – Wells Fargo & Co. priced $1.3 million of market-linked securities due Nov. 21, 2023 – callable with contingent coupon and contingent downside linked to the least performing of the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.5% if each index closes at or above its 70% coupon threshold on the observation date for that quarter.
Wells Fargo may call the notes in whole at par quarterly after six months.
The payout at maturity will be par unless any index finishes below its 60% 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 – callable with contingent coupon and contingent downside
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index and Nasdaq-100
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| Amount: | $1,295,000
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| Maturity: | Nov. 21, 2023
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| Coupon: | 9.5% annualized, payable quarterly if each index closes at or above coupon threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any index falls by more than 40%, in which case 1% loss per 1% decline of worst performing index
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| Call: | In whole at par quarterly after six months
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| Initial levels: | 2,711.74 for Dow, 6,867.015 for Nasdaq, 1,527.533 for Russell
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| Coupon thresholds: | 17,789.254 for Dow, 4,806.9105 for Nasdaq, 1,069.2731 for Russell, 70% of initial levels
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| Downside thresholds: | 15,247.932 for Dow, 4,120.209 for Nasdaq, 916.5198 for Russell, 60% of initial levels
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| Pricing date: | Nov. 16
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| Settlement date: | Nov. 21
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 0.875%
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| Cusip: | 95001BAY0
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