Wells Fargo plans contingent annual interest CDs linked to commodities

By Angela McDaniels

Tacoma, Wash., April 27 - Wells Fargo Bank, NA plans to price contingent annual interest market-linked certificates of deposit due May 30, 2017 linked to a commodity basket, according to a term sheet.

The equally weighted basket includes the S&P GSCI Brent Crude Oil Index Excess Return, the S&P GSCI Livestock Index Excess Return, copper, corn futures, gasoline futures, nickel, gold, soybean futures and silver.

In May of each year, the CDs will pay a coupon equal to the sum of the basket components' weighted component returns, subject to a minimum of zero. If a basket component's return is greater than or equal to zero, its component return will equal the fixed component return. Otherwise, its component return will be the greater of its return and negative 25%. The fixed component return is expected to be 5.5% to 8.5% and will be set at pricing.

The payout at maturity will be par.

The CDs (Cusip: 949748P84) are expected to price May 24 and settle May 30.

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.