What are 'Principal at Risk Securities'?

'Principal at Risk Securities' are a type of investment where the return of the principal amount invested is not guaranteed. The amount of principal returned to the investor is dependent on the performance of an underlying asset, index, or other benchmark. If the underlying performs poorly, the investor may lose some or all of their initial investment.

What are the specific investment risks associated with these Medium-Term Notes?

The primary risk is the loss of principal. Investors are exposed to the market performance of the Russell 2000® Index, an international equity index basket, or the SPDR® S&P® Bank ETF. If these underlyings decline in value, the principal amount returned to the investor will be reduced accordingly. There are also risks associated with the creditworthiness of Wells Fargo as the issuer.

Who is the target investor for these types of notes?

These notes are generally suited for investors who are sophisticated and understand the risks involved, particularly the risk of losing principal. They might be attractive to investors seeking potentially enhanced returns or specific market exposure that these linked indices or ETFs offer, and who are comfortable with the higher risk profile compared to traditional fixed-income investments.

Where can I find more details about the terms and conditions of these notes?

The specific terms and conditions for each series of Medium-Term Notes, Series K, are detailed within the 'Form of Note' exhibits (4.1 through 4.4) filed with this Form 8-K. Investors should carefully review these documents, along with the legal opinion, to fully understand the structure, risks, and potential outcomes of these investments.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

Wells Fargo & Company filed a Form 8-K on December 28, 2015, to report the issuance of several series of Medium-Term Notes, Series K, which are Principal at Risk Securities. These notes are linked to various investment underlyings, including the Russell 2000® Index, an international equity index basket, and the SPDR® S&P® Bank ETF. The filing includes the forms of these notes and a legal opinion from Faegre Baker Daniels LLP regarding their issuance. For investors, this filing signifies the introduction of new structured financial products by Wells Fargo. The 'Principal at Risk' nature of these notes means that investors could lose a portion or all of their principal investment depending on the performance of the underlying index or ETF. This type of product is typically geared towards investors seeking potentially higher returns in exchange for taking on significant principal risk and market exposure.

Key Highlights

1Wells Fargo issued multiple series of Medium-Term Notes, Series K, on December 28, 2015.
2These notes are classified as 'Principal at Risk Securities,' meaning investors may lose principal.
3The notes are linked to various investment underlyings: Russell 2000® Index, an international equity index basket, and the SPDR® S&P® Bank ETF.
4Specific note maturities include December 28, 2021, and December 29, 2020.
5The filing includes the official forms of these notes as exhibits.
6A legal opinion from Faegre Baker Daniels LLP regarding the notes is also filed.
7This filing is in connection with a Registration Statement on Form S-3 previously filed by Wells Fargo.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Dec 28, 2015)

Summary

Key Highlights

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