Summary
This 8-K filing from Wells Fargo & Company on October 5, 2016, primarily serves to disclose the details of two new issuances of Medium-Term Notes, Series K. These notes are structured as "Principal at Risk Securities," meaning investors could lose a portion or all of their principal investment depending on the performance of the underlying assets. The specific issuances are linked to the Energy Select Sector SPDR® Fund and a basket of major indices (S&P 500®, Russell 2000®, and EURO STOXX 50®).
Key Highlights
- 1Wells Fargo issued new Medium-Term Notes, Series K, on October 5, 2016.
- 2These notes are classified as 'Principal at Risk Securities'.
- 3One note issuance is linked to the performance of the Energy Select Sector SPDR® Fund, maturing April 6, 2020.
- 4Another note issuance is linked to the lowest performing of the S&P 500® Index, Russell 2000® Index, and EURO STOXX 50® Index, maturing April 5, 2019.
- 5The filing includes the forms of these Notes as exhibits.
- 6Legal opinions from Faegre Baker Daniels LLP regarding the Notes are also filed as exhibits.
Frequently Asked Questions
'Principal at Risk Securities' are debt instruments where the return of the principal investment is not guaranteed and depends on the performance of an underlying asset or index. If the underlying asset performs poorly, investors may lose some or all of their principal.
The first note is linked to the Energy Select Sector SPDR® Fund. The second note is linked to the performance of the lowest performing among the S&P 500® Index, the Russell 2000® Index, and the EURO STOXX 50® Index.
Wells Fargo is filing this 8-K to formally disclose the terms and documentation for these new Medium-Term Notes issuances as required by SEC regulations, specifically by filing the forms of the notes and related legal opinions as exhibits.
The note linked to the Energy Select Sector SPDR® Fund has a maturity date of April 6, 2020. The note linked to the basket of indices has a maturity date of April 5, 2019.