What type of financial instruments did Wells Fargo issue?

Wells Fargo issued three series of Medium-Term Notes, Series K. Two of these are structured as Principal at Risk Securities linked to the Russell 2000® Index and the S&P 500® Index, and one is linked to the 10-Year Constant Maturity Swap Rate.

What is the significance of 'Principal at Risk Securities'?

Securities described as 'Principal at Risk' typically mean that the investor could lose a portion or all of their principal investment if the underlying asset (in this case, the stock indices) performs poorly. The return and principal repayment are often tied to the performance of the linked index.

Why is Wells Fargo filing this 8-K report?

This 8-K filing is made to officially submit the forms of the newly issued Medium-Term Notes and the legal opinion from Faegre Baker Daniels LLP concerning these notes to the Securities and Exchange Commission.

Are these notes suitable for all investors?

Given the 'Principal at Risk' nature of two of the note issuances and the complexity of notes linked to swap rates, these instruments are likely intended for sophisticated investors who understand the associated risks, including the potential loss of principal and the intricacies of structured products.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

Wells Fargo & Company filed an 8-K report on November 30, 2015, to disclose the issuance of new Medium-Term Notes, Series K. These notes are structured as Principal at Risk Securities linked to either the Russell 2000® Index or the S&P 500® Index, with maturities in 2021 and 2020, respectively. Additionally, a separate note linked to the 10-Year Constant Maturity Swap Rate with a maturity in 2027 was issued. This filing primarily serves to provide the forms of these debt instruments and the legal opinion from Faegre Baker Daniels LLP regarding the Notes.

Key Highlights

1Wells Fargo issued three series of Medium-Term Notes, Series K, on November 30, 2015.
2Two of the note issuances are Principal at Risk Securities linked to major stock indices (Russell 2000® and S&P 500®).
3Maturities for the index-linked notes are November 29, 2021, and November 30, 2020.
4A third note issuance is linked to the 10-Year Constant Maturity Swap Rate and matures on November 30, 2027.
5The primary purpose of this 8-K filing is to provide the forms of these Notes as exhibits.
6The filing includes a legal opinion from Faegre Baker Daniels LLP concerning the Notes.
7This report is related to a Registration Statement on Form S-3 previously filed by Wells Fargo.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Nov 30, 2015)

Summary

Key Highlights

Frequently Asked Questions