Published on 2/6/2020 in the Prospect News Structured Products Daily.
New Issue: Wells Fargo sells $500,000 contingent market-linked autocalls on three indexes
By Sarah Lizee
Olympia, Wash., Feb. 6 – Wells Fargo Finance LLC priced $500,000 of market-linked securities due Feb. 6, 2030 – autocallable with contingent coupon and contingent downside linked to the least performing of the Euro Stoxx 50 index, the Nasdaq-100 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.
The notes will pay a contingent quarterly coupon at an annual rate of 8.5% if each index closes at or above its 80% coupon threshold on the observation date for that period.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date beginning in February 2021.
The payout at maturity will be par unless any index finishes below its 60% downside threshold, in which case investors will lose 1% for every 1% decline of the least performing index.
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 – autocallable with contingent coupon and contingent downside
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| Underlying indexes: | Euro Stoxx 50 index, Nasdaq-100 index, Russell 2000 index
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| Amount: | $500,000
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| Maturity: | Feb. 6, 2030
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| Coupon: | 8.5% annualized, payable quarterly if each index closes at or above coupon threshold on observation date for that period
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| Price: | Par
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| Payout at maturity: | Par unless any index falls by more than downside threshold, in which case 1% loss per 1% decline of worst performing index
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| Call: | At par if each index closes at or above its initial level on any interest payment date beginning in February 2021
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| Initial levels: | 9,090.933 for Nasdaq, 1,658.314 for Russell, 3,719.22 for Stoxx
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| Coupon thresholds: | 7,272.7464 for Nasdaq, 1,326.6512 for Russell, 2,975.376 for Stoxx, 80% of initial levels
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| Downside thresholds: | 5,454.5598 for Nasdaq, 994.9884 for Russell, 2,231.532 for Stoxx, 60% of initial levels
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| Pricing date: | Jan. 28
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| Settlement date: | Jan. 31
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| Agent: | Wells Fargo Securities LLC
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| Fees: | 4.25%
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| Cusip: | 95001HE98
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