What are 'Principal at Risk Securities'?

Principal at Risk Securities are structured investment products where the repayment of your principal is linked to the performance of an underlying asset, such as an index. If the underlying asset performs poorly, you could lose a portion or all of your principal investment. These are generally considered more complex and riskier than traditional investments.

What is the specific risk associated with these Wells Fargo Notes?

The risk is that the value of the S&P 500® Index or the SPDR® S&P 500® ETF Trust may decline significantly by the maturity date (June 3, 2019). If this happens, the principal amount you invested could be reduced accordingly.

Why is Wells Fargo filing these documents as an 8-K?

Wells Fargo is filing this 8-K to publicly disclose the terms and legal documentation related to the issuance of these new financial products. This is a requirement for public companies when significant corporate events, such as the issuance of new securities, occur.

Is this offering available to all investors?

This filing pertains to the structure and legal opinions of the Notes. Whether these specific Notes are offered to the general public or are limited to certain types of investors (e.g., institutional or accredited investors) would typically be detailed in the prospectus supplement related to this offering, which is not fully detailed in this 8-K. However, the use of Form S-3 generally indicates a continuous offering.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

This 8-K filing from Wells Fargo & Company on June 3, 2016, primarily serves to disclose the issuance of new financial instruments, specifically Medium-Term Notes, Series K, which are Principal at Risk Securities. These notes are linked to the performance of the S&P 500® Index and the SPDR® S&P 500® ETF Trust, with a maturity date of June 3, 2019. Investors should note that these are structured products where the principal amount is at risk, meaning the return of principal is contingent on the performance of the underlying index. The filing includes the forms of these notes and legal opinions from Faegre Baker Daniels LLP. This disclosure is part of a broader registration process on Form S-3, indicating a continuous offering of securities.

Key Highlights

1Wells Fargo issued new Medium-Term Notes, Series K, on June 2, 2016.
2The Notes are 'Principal at Risk Securities', meaning the principal is subject to loss based on market performance.
3The investment performance is linked to the S&P 500® Index and the SPDR® S&P 500® ETF Trust.
4The maturity date for these Notes is June 3, 2019.
5The filing includes the official forms of these specific notes.
6Legal opinions from Faegre Baker Daniels LLP regarding the Notes are included as exhibits.
7This issuance is connected to a previously filed Registration Statement on Form S-3.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Jun 3, 2016)

Summary

Key Highlights

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