By Marisa Wong
Los Angeles, Feb. 21 – Wells Fargo Finance LLC priced $1.83 million of market-linked securities due Feb. 20, 2025 – callable with contingent coupon and contingent downside linked to the least performing of the common stocks of Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Wells Fargo & Co.
The notes will pay a contingent quarterly coupon if each stock closes at or above its 60% coupon threshold on the related quarterly observation date. The coupon will be 10% per year.
Wells Fargo may call the notes in whole at par on the coupon payment dates in August 2020 and November 2020.
After one year, the notes will be automatically called at par if each stock closes at or above its initial price on any quarterly observation date.
The payout at maturity will be par unless any stock finishes below its 60% downside threshold, in which case the payout will be par plus the return of the worst performing stock with full exposure to any losses.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo Finance LLC
|
| Guarantor: | Wells Fargo & Co.
|
| Issue: | Market linked securities – callable with contingent coupon and contingent downside
|
| Underlying stocks: | Bank of America Corp. (Symbol: BAC), Citigroup Inc. (Symbol: C) and JPMorgan Chase & Co. (Symbol: JPM)
|
| Amount: | $1,825,000
|
| Maturity: | Feb. 20, 2025
|
| Coupon: | 10% per year, payable each quarter that each stock closes at or above coupon threshold on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock falls by more than 40%, in which case 1% loss per 1% decline of worst performing stock
|
| Call: | Optionally in whole at par | on coupon payment dates in August 2020 and November 2020; automatically at par if each stock closes at or above its initial price on any quarterly observation date after one year
|
| Initial prices: | $34.77 for BofA, $79.09 for Citi, $138.00 for JPMorgan
|
| Coupon thresholds: | $20.862 for BofA, $47.454 for Citi, $82.80 for JPMorgan; 60% of initial prices
|
| Downside thresholds: | $20.862 for BofA, $47.454 for Citi, $82.80 for JPMorgan; 60% of initial prices
|
| Pricing date: | Feb. 11
|
| Settlement date: | Feb. 14
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | 0.25%
|
| Cusip: | 95001HF63
|
|
|
|
|
© 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.
