Wells Fargo to price six-year market-linked CDs tied to commodities

By Jennifer Chiou

New York, Oct. 5 - Wells Fargo Bank, NA plans to price contingent annual interest market-linked certificates of deposit due Oct. 31, 2017 linked to an equally weighted basket of commodities and a commodity index, according to a term sheet.

The underlying index is the S&P GSCI Livestock Index Excess Return, and the commodities are natural gas, Brent crude oil, copper, corn, gasoline, soybeans, nickel silver and sugar.

The coupon for each interest period will be equal to the sum of the weighted basket component returns. If an underlying index or commodity's return is zero or positive, its component return will equal a fixed return of 7% to 10% that will be set at pricing. Otherwise, the basket component return will equal the underlying return, subject to a floor of negative 25%. Interest is payable annually and cannot be less than zero.

The payout at maturity will be par.

The CDs (Cusip: 949748L47) are expected to price on Oct. 25 and settle on Oct. 31.

Incapital LLC is the distributor.

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