By Sarah Lizee
Olympia, Wash., Oct. 4 – Wells Fargo Finance LLC sold $23.57 million of 8% STEP Income Securities due Oct. 9, 2020 linked to the common stock of Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Wells Fargo & Co.
Interest is payable quarterly.
If the final price of the stock is greater than or equal to the step level, 108% of the initial share price, the payout at maturity will be par of $10 plus 2.01%.
If the final share price is greater than or equal to the initial share price but less than the step level, investors will receive par.
If the final share price is less than the initial share price, investors will lose 1% for each 1% decline.
BofA Merrill Lynch is the agent.
| Issuer: | Wells Fargo Finance LLC
|
| Guarantor: | Wells Fargo & Co.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Microsoft Corp.
|
| Amount: | $23,567,040
|
| Maturity: | Oct. 9, 2020
|
| Coupon: | 8%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is greater than or equal to step level, par plus 2.01%; if final share price is greater than or equal to initial share price but less than step level, par; if final share price is less than initial share price, 1% loss for each 1% decline
|
| Initial share price: | $139.41
|
| Step level: | $150.56, 108% of initial share price
|
| Pricing date: | Sept. 26
|
| Settlement date: | Oct. 3
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 95002W826
|
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