Published on 2/1/2019 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $670,000 callable market-linked notes on S&P, Stoxx
By Sarah Lizee
Olympia, Wash., Feb. 1 – Wells Fargo Finance LLC priced $670,000 of market-linked securities – callable with contingent coupon and contingent downside – due Feb. 2, 2029 linked to the lesser performing of the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Wells Fargo & Co.
Each quarter, the notes will pay a contingent coupon at an annual rate of 9.3% if each index closes at or above its 75% coupon threshold level on the observation date for that quarter.
The notes will be callable at par on any contingent coupon payment date after one year.
The payout at maturity will be par unless either index finishes below its threshold level, 60% of its initial level, in which case the payout will be par plus the return of the lesser-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: | S&P 500, Euro Stoxx 50
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Amount: | $670,000
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Maturity: | Feb. 2, 2029
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Coupon: | 9.3%, payable each quarter that 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 either index falls by more than 40%, in which case par plus return of lesser-performing index
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Call option: | At par on any contingent coupon payment date after one year
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Initial levels: | 2,681.05 for S&P, 3,161.74 for Stoxx
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Coupon threshold levels: | 2,010.7875 for S&P, 2,371.305 for Stoxx, 75% of initial levels
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Threshold levels: | 1,608.63 for S&P, 1,897.044 for Stoxx; 60% of initial levels
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Pricing date: | Jan. 30
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Settlement date: | Feb. 1
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Agent: | Wells Fargo Securities LLC
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Fees: | 3.6%
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Cusip: | 95001H2P5
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