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Wells Fargo plans variable annual interest CDs linked to 10 stocks
By Angela McDaniels
Tacoma, Wash., March 8 – Wells Fargo Bank, NA plans to price variable annual interest certificates of deposit due March 31, 2023 linked to a basket of 10 equally weighted stocks, according to a term sheet.
The underlying companies are Apple Inc., AT&T Inc., Bristol-Myers Squibb Co., Cisco Systems, Inc., Coca-Cola Co., Merck & Co., Inc., Nike, Inc., Procter & Gamble Co., Starbucks Corp. and Verizon Communications Inc.
Each year the CDs will pay a coupon equal to the sum of the stocks’ weighted component returns, subject to a minimum interest rate that is expected to be 0.4% to 0.6% per year and will be set at pricing.
On any valuation date, if a stock’s underlying return is at least zero, its component return will be equal to the fixed component return, 5%. Otherwise, its component return will be equal to its underlying return, subject to a floor of negative 15%.
The payout at maturity will be par plus the final coupon.
Incapital LLC is the distributor.
The CDs will price March 28.
The Cusip number is 94986TXV4.
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