Published on 1/23/2019 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $1.73 million callable market-linked contingent notes on indexes
By Sarah Lizee
Olympia, Wash., Jan. 23 – Wells Fargo Finance LLC priced $1.73 million of market-linked securities due Jan. 23, 2024 – 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 are guaranteed by Wells Fargo & Co.
The notes will pay a contingent quarterly coupon at an annual rate of 11.5% if each index closes at or above its 70% coupon threshold on the observation date for that period.
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 Finance LLC
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Guarantor: | 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: | $1,725,000
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Maturity: | Jan. 23, 2024
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Coupon: | 11.5% annualized, payable quarterly if each index closes at or above coupon threshold on observation date for that period
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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: | 24,706.35 for Dow, 6,784.608 for Nasdaq, 1,482.501 for Russell
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Coupon thresholds: | 17,294.445 for Dow, 4,749.2256 for Nasdaq, 1,037.7507 for Russell, 70% of initial levels
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Downside thresholds: | 14,823.81 for Dow, 4,070.7648 for Nasdaq, 889.5006 for Russell, 60% of initial levels
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Pricing date: | Jan. 18
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Settlement date: | Jan. 24
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Agent: | Wells Fargo Securities LLC
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Fees: | 1%
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Cusip: | 95001H2F7
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