Wells Fargo eyes contingent market-linked notes tied to S&P 500

By Sarah Lizee

Olympia, Wash., Aug. 23 – Wells Fargo Finance LLC plans to price market-linked securities due Aug. 31, 2021 – contingent upside participation and contingent absolute return with principal return at maturity with daily knock-out monitoring linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Wells Fargo & Co.

A knock-out event will occur if the closing level of the index on any day during the life of the notes is greater than the upper knock-out level of at least 118.75% of the starting level or less than the lower knock-out level of at most 81.25% of the starting level.

If a knock-out event has not occurred and the index finishes at or above its initial level, the payout will be par plus the gain of the index.

If a knock-out event has not occurred and the index finishes below its initial level, the payout will be par plus the absolute value of the return of the index.

If a knock-out event has occurred, the payout will be par plus a knock-out return of 2%.

Wells Fargo Securities LLC is the agent.

The notes will price on Aug. 27.

The Cusip number is 95001HA76.

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