Published on 1/2/2019 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $1.46 million contingent market-linked autocalls on stocks
By Sarah Lizee
Olympia, Wash., Jan. 2 – Wells Fargo & Co. priced $1.46 million of market-linked securities due Dec. 31, 2021– autocallable with contingent coupon and contingent downside linked to the lowest performing of the common stocks of Alphabet Inc., Amazon.com, Inc. and Starbucks Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 12.6% 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 June 2019 to September 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: | Alphabet Inc., Amazon.com, Inc. and Starbucks Corp.
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Amount: | $1,461,000
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Maturity: | Dec. 31, 2021
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Coupon: | 12.6% annualized, payable quarterly if each stock closes at or above 60% coupon threshold on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless any stock falls by more than 60%, 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 initial level on any interest payment date from June 2019 to September 2021
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Initial levels: | $1,037.08 for Alphabet, $1,478.02 for Amazon, $63.39 for Starbucks
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Downside thresholds: | $622.248 for Alphabet, $886.812 for Amazon, $38.034 for Starbucks, 60% of initial levels
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Pricing date: | Dec. 28
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Settlement date: | Jan. 3
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Agent: | Wells Fargo Securities LLC
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Fees: | 3.25%
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Cusip: | 95001BBF0
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