Published on 3/8/2020 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $1.28 million callable market-linked notes on indexes
By Kiku Steinfeld
Chicago, March 9 – Wells Fargo Finance LLC priced $1.28 million of market-linked securities – callable with contingent coupon and contingent downside – due March 4, 2030 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 9.45% if each index closes at or above its 70% coupon threshold level on the observation date for that quarter.
The notes will be callable at par plus any coupon on any contingent coupon payment date after six months.
The payout at maturity will be par plus any coupon unless any index finishes below its 60% downside threshold level, in which case the payout will be par plus the return of the worst performing index with full exposure to any losses.
The notes are guaranteed by Wells Fargo & Co.
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 indexes: | S&P 500, Russell 2000, Euro Stoxx 50
|
| Amount: | $1,275,000
|
| Maturity: | March 4, 2030
|
| Coupon: | 9.45% annually, payable quarterly if indexes close at or above coupon threshold on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus any coupon unless any index falls by more than 40%, in which case par plus return of worst performing index
|
| Call option: | At par plus any coupon on any contingent coupon payment date after six months
|
| Initial levels: | 2978.76 for S&P, 1497.870 for Russell, 3455.92 for Euro Stoxx
|
| Coupon thresholds: | 2085.132 for S&P, 1048.509 for Russell, 2419.144 for Euro Stoxx; 70% of initial levels
|
| Downside thresholds: | 1787.256 for S&P, 1787.256 for Russell, 2073.552 for Euro Stoxx; 60% of initial levels
|
| Pricing date: | Feb. 27
|
| Settlement date: | March 3
|
| Agent: | Wells Fargo Securities LLC
|
| Fees: | 1.25%
|
| Cusip: | 95001HG62
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