What is a 'Principal at Risk Security'?

A 'Principal at Risk Security' is a type of investment where the potential return is linked to an underlying asset or index, but the principal amount invested could be lost, partially or fully, depending on the performance of that underlying asset. In this case, the principal is linked to the SPDR® S&P 500® ETF Trust.

What is the SPDR® S&P 500® ETF Trust?

The SPDR® S&P 500® ETF Trust (SPY) is an exchange-traded fund that aims to track the performance of the S&P 500 Index. The S&P 500 Index is a stock market index representing 500 of the largest U.S. publicly traded companies.

What are the key risks for an investor in these notes?

The primary risk is that the value of the SPDR® S&P 500® ETF Trust may decline by the maturity date. If the ETF's performance is poor, investors could lose a portion or all of their principal investment. Investors should also consider market risk, credit risk of Wells Fargo, and the specific terms and conditions detailed in the Note prospectus.

Where can I find more details about these notes?

More details about these notes can be found in the Form of Medium-Term Notes, Series K, Principal at Risk Securities Linked to the SPDR® S&P 500® ETF Trust due December 7, 2020, which is filed as Exhibit 4.1 to this 8-K filing. The legal opinion from Faegre Baker Daniels LLP (Exhibit 5.1) may also provide relevant information.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

This filing by Wells Fargo & Company (WFC) on June 5, 2015, relates to the issuance of Medium-Term Notes, Series K, Principal at Risk Securities Linked to the SPDR® S&P 500® ETF Trust due December 7, 2020. The primary purpose of this 8-K is to formally submit the documentation related to this specific debt issuance, including the form of the Note itself and the legal opinion from Faegre Baker Daniels LLP. For investors, this filing signifies the introduction of a new structured financial product by Wells Fargo. The "Principal at Risk" nature of these notes means that the repayment of the principal is contingent on the performance of the underlying asset, the SPDR® S&P 500® ETF Trust. Investors should carefully consider the risks associated with the performance of the S&P 500 index and the specific terms outlined in the Note before making any investment decisions.

Key Highlights

1Wells Fargo issued Medium-Term Notes, Series K, Principal at Risk Securities.
2The notes are linked to the performance of the SPDR® S&P 500® ETF Trust.
3The maturity date for these notes is December 7, 2020.
4This 8-K filing serves to disclose the form of the Note and related legal opinions.
5The issuance is connected to a Registration Statement on Form S-3 filed previously by Wells Fargo.
6The legal opinion was provided by Faegre Baker Daniels LLP.
7This filing provides investors with transparency regarding specific debt instruments offered by the company.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Jun 5, 2015)

Summary

Key Highlights

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