Wells Fargo plans contingent annual interest CDs tied to commodities

By Angela McDaniels

Tacoma, Wash., Dec. 3 - Wells Fargo Bank, NA plans to price contingent annual interest market-linked certificates of deposit due Dec. 29, 2015 linked to a basket of commodities and indexes, according to a term sheet.

The basket includes equal weights of West Texas Intermediate crude oil, natural gas, corn, soybeans, zinc, gold, silver, platinum, the S&P GSCI Wheat Index Excess Return and the S&P GSCI Livestock Index Excess Return.

The CDs will pay a coupon in December of each year equal to the sum of the weighted returns of the basket components, subject to a floor of zero. The return of each basket component will be subject to a cap of 11% to 14%, with the exact cap to be set at pricing, and a floor of negative 20%.

The payout at maturity will be par.

The CDs are expected to price Dec. 21 and settle Dec. 29.

Morgan Stanley & Co. Inc. is the agent.

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