Wells Fargo Bank plans to sell CDs due 2020 linked to yield curve

By Susanna Moon

Chicago, Jan. 5 - Wells Fargo Bank, NA plans to price certificates of deposit due Jan. 20, 2020 based on the performance of a yield curve, according to a term sheet.

The yield curve will be the spread of the 30-year dollar Constant Maturity Swap rate over the two-year dollar CMS rate.

Interest for the first year will be 7.25%. After that, the rate will be four times the yield curve minus 25 basis points, with a floor of 0% and a cap of 8%. Interest is payable quarterly.

The payout at maturity will be par.

The CDs are callable on any interest payment date beginning Jan. 20, 2012.

The CDs will price on Jan. 12 and settle on Jan. 20.

Incapital LLC is the distributor.

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