Wells Fargo to price 12-year CDs linked to 10-, two-year CMS rates

By Angela McDaniels

Tacoma, Wash., May 12 - Wells Fargo Bank, NA plans to price certificates of deposit due May 21, 2022 linked to the spread of the 10-year dollar Constant Maturity Swap rate over the two-year dollar CMS rate, according to a term sheet.

The interest rate will be 7% for the first year. After that, the rate will be four times the spread minus 0.125%, with a floor of 0% and a cap of 7% per year in each interest period. Interest is payable quarterly.

The payout at maturity will be par.

Beginning May 21, 2012, the CDs will be callable at par on any interest payment date.

The CDs will price on May 18 and settle May 21.

Incapital LLC is the distributor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.