Published on 4/12/2019 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $2.76 million contingent coupon market-linked notes on indexes
By Marisa Wong
Morgantown, W.Va., April 12 – Wells Fargo Finance LLC priced $2.76 million of market-linked securities due April 8, 2027 – autocallable with contingent coupon and contingent downside linked to the least performing of the S&P 500 index, Russell 2000 index and 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 7.1% if each index closes at or above its 70% coupon threshold on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date from April 2020 to January 2027.
The payout at maturity will be par unless any index finishes below its 50% downside threshold, in which case investors will lose 1% for every 1% decline of the least performing index.
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 – autocallable with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500 index, Russell 2000 index and Euro Stoxx 50 index
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| Amount: | $2,755,000
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| Maturity: | April 8, 2027
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| Coupon: | 7.1% annualized, 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 any index falls by more than 40%, in which case 1% loss per 1% decline of worst performing index
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| Call: | At par if each index closes at or above its initial level on any quarterly calculation date from April 2020 to January 2027
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| Initial levels: | 2,815.44 for S&P, 1,535.104 for Russell, 3,320.29 for Stoxx
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| Coupon thresholds: | 1,970.808 for S&P, 1,074.5728 for Russell, 2,324.203 for Stoxx; 70% of initial levels
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| Downside thresholds: | 1407.72 for S&P, 767.552 for Russell, 1660.145 for Stoxx; 50% of initial levels
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| Pricing date: | March 28
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| Settlement date: | April 2
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 2.075%
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| Cusip: | 95001H3Y5
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