Published on 2/1/2019 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $3.76 million callable market-linked notes on S&P, Russell
By Marisa Wong
Morgantown, W.Va., Feb. 1 – Wells Fargo Finance LLC priced $3.76 million of market-linked securities – callable with contingent coupon and fixed percentage buffered downside – due Jan. 28, 2021 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Wells Fargo & Co.
Each month, the notes will pay a contingent coupon at an annual rate of 10% if each index closes at or above its 85% threshold level on the observation date for that month.
The notes will be callable at par on any contingent coupon payment date after six months.
The payout at maturity will be par unless either index finishes below its threshold level, in which case investors will lose 1% for every 1% decline of the lesser-performing index beyond 15%.
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 fixed percentage buffered downside
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| Underlying indexes: | S&P 500, Russell 2000
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| Amount: | $3.76 million
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| Maturity: | Jan. 28, 2021
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| Coupon: | 10%, payable each month that each index closes at or above threshold level on observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless either index falls by more than 15%, in which case 1% loss for every 1% decline of lesser-performing index beyond 15%
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| Call option: | At par on any contingent coupon payment date after six months
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| Initial levels: | 2,664.76 for S&P, 1,482.853 for Russell
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| Threshold levels: | 2,265.046 for S&P, 1,260.42505 for Russell, 85% of initial levels
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| Pricing date: | Jan. 25
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| Settlement date: | Jan. 30
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 0.75%
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| Cusip: | 95001H2K6
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