Wells Fargo plans leveraged market-linked notes on stock basket

By Sarah Lizee

Olympia, Wash., Jan. 15 – Wells Fargo Finance LLC plans to price 0% market-linked notes with leveraged upside participation to a cap and one-to-one downside exposure due March 31, 2021 linked to a basket of financial sector stocks, according to a 424B2 filed with the Securities and Exchange Commission.

The notes are guaranteed by Wells Fargo & Co.

The basket consists of the common stocks of Citigroup Inc., Morgan Stanley and JPMorgan Chase & Co., with each stock having an equal weight in the basket.

The payout at maturity will be par plus 3 times any basket gain, capped at par plus 21% to 25%.

Investors will lose 1% for each 1% decline of the basket.

Wells Fargo Securities, LLC is the agent.

The notes will price Jan. 28.

The Cusip number is 95001HE31.

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