8-KExhibits & Filings

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Nov 4, 2015)

Filed November 4, 2015For Securities:WFCWFC-PDWFC-PCWFC-PYWFC-PAWFC-PLWFCNPWFC-PZ

Summary

This 8-K filing from Wells Fargo & Company (WFC) on November 4, 2015, primarily concerns the issuance of new Medium-Term Notes, Series K. These notes are structured as "Principal at Risk Securities," meaning investors could lose principal based on the performance of underlying indices. Specifically, two types of notes were issued: one linked to the S&P 500® Index and another linked to the Energy Select Sector SPDR® Fund, both with a maturity date of November 2, 2018. For investors, this filing indicates the company is continuing to offer structured debt products. The "Principal at Risk" nature of these notes is a critical feature, highlighting that their return and principal repayment are contingent on market performance, which carries a higher degree of risk compared to traditional fixed-income investments. The inclusion of legal opinions and consents from Faegre Baker Daniels LLP suggests a formal and legally reviewed offering process.

Key Highlights

  • 1Wells Fargo issued new Medium-Term Notes, Series K, on November 3, 2015.
  • 2These notes are classified as 'Principal at Risk Securities'.
  • 3One series of notes is linked to the performance of the S&P 500® Index.
  • 4Another series of notes is linked to the performance of the Energy Select Sector SPDR® Fund.
  • 5Both series of notes have a maturity date of November 2, 2018.
  • 6The filing includes forms of the notes and legal opinions from Faegre Baker Daniels LLP.
  • 7This filing is related to a Registration Statement on Form S-3 previously filed by Wells Fargo.

Frequently Asked Questions

'Principal at Risk Securities' are investment products where the amount of principal returned to the investor at maturity is dependent on the performance of an underlying asset or index. If the underlying asset performs poorly, investors may lose a portion or all of their initial principal investment, in addition to not receiving any interest or gains.

The primary risk is that the principal amount returned at maturity (November 2, 2018) will be less than the initial investment if the S&P 500® Index or the Energy Select Sector SPDR® Fund performs unfavorably by the maturity date. Investors could lose a significant portion or all of their principal.

Filing the forms of the notes provides investors and the public with the exact terms and conditions of these specific debt instruments. The legal opinion from Faegre Baker Daniels LLP confirms the legality and validity of the notes being issued, offering a layer of assurance regarding their structure and compliance.

No, these notes are generally suitable for investors who understand the risks involved, have a high-risk tolerance, and are looking for potential returns tied to market performance, while being prepared for the possibility of principal loss. They are not recommended for conservative investors seeking capital preservation.