Published on 3/2/2020 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $3.02 million callable market-linked contingent notes on S&P, Russell, Stoxx
By Wendy Van Sickle
Columbus, Ohio, March 2 – Wells Fargo Finance LLC priced $3.02 million of market-linked securities due Feb. 28, 2030 – callable with contingent coupon and contingent downside linked to the least performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, 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 index closes at or above its 75% coupon threshold on the observation date for that period. The coupon will be 8.2% per year for the first five years, 8.5% in years six through eight and 10% thereafter.
Wells Fargo may call the notes in whole at par quarterly after six months.
The payout at maturity will be par unless any index finishes below its 60% downside threshold, in which case the payout will be par plus the return of the worst performing index with full exposure to any losses.
Wells Fargo Securities LLC is the agent.
| Issuer: | Wells Fargo Finance LLC
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| Guarantor: | Wells Fargo & Co.
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| Issue: | Market linked securities – callable with contingent coupon and contingent downside
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| Underlying indexes: | Euro Stoxx 50 index, Russell 2000 index and S&P 500 index
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| Amount: | $3,015,000
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| Maturity: | Feb. 28, 2030
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| Coupon: | Payable quarterly if each index closes at or above coupon threshold on observation date for that period; rate is 8.2% per year for the first five years, 8.5% in years six through eight and 10% thereafter
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| Price: | Par
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| Payout at maturity: | Par unless any index falls by more than 40%, in which case 1% loss per 1% decline of worst performing index
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| Call: | In whole at par quarterly after six months
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| Initial levels: | 1,571.897 | for Russell, 3,234.65 for S&P, 3,572.51 for Stoxx
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| Coupon thresholds: | 1,178.92275 for Russell, 2,346.157 for S&P, 2,679.3825 for Stoxx, 75% of initial levels
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| Downside thresholds: | 943.1382 for Russell, 1,876.926 for S&P, 2,143.506 for Stoxx, 60% of initial levels
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| Pricing date: | Feb. 25
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| Settlement date: | Feb. 28
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4%
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| Cusip: | 95001HES6
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