Published on 3/5/2020 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $3.15 million callable market-linked notes on S&P, Russell, Stoxx
Chicago, March 5 – Wells Fargo Finance LLC priced $3.15 million of market-linked securities due March 6, 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 at an annual rate of 6% if each index closes at or above its 60% coupon threshold on the observation date for that period.
Wells Fargo may call the notes in whole at par plus any coupon due on the optional redemption dates in September 2020 and December 2020.
The notes will be automatically called after the first year if the worst performing index finishes above its initial level on the quarterly calculation days starting in March 2021.
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: | $3,150,000
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| Maturity: | March 6, 2030
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| Coupon: | 6%, payable quarterly if each index closes at or above coupon threshold on observation date for that period
|
| 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 plus any coupon on option redemption dates in September 2020 and December 2020; automatically at par plus coupon if all indexes close above their initial levels on any quarterly calculation date starting in March 2021
|
| Initial levels: | 1552.761 for Russell, 3116.39 for S&P, 3577.68 for Stoxx
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| Coupon thresholds: | 931.6566 for Russell, 1869.834 for S&P, 2146.608 for Stoxx, 60% of initial levels
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| Downside thresholds: | 931.6566 for Russell, 1869.834 for S&P, 2146.608 for Stoxx, 60% of initial levels
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| Pricing date: | Feb. 26
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| Settlement date: | Feb. 28
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 2.874%
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| Cusip: | 95001HFB2
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