What are these Medium-Term Notes, Series K?

These are debt securities issued by Wells Fargo with a fixed maturity date of November 6, 2023, and a coupon rate of 0.25%. What makes them distinct is that their return is linked to the performance of the common stock of Western Digital Corporation.

How does the equity-linking to Western Digital Corporation affect the notes?

The performance and potential return of these notes are dependent on the price movements of Western Digital Corporation's stock. If Western Digital's stock performs well, the noteholders may receive a higher return than the stated 0.25% interest, depending on the specific terms outlined in the note prospectus. Conversely, if the stock performs poorly, the return may be limited to the 0.25% interest or could be subject to other conditions detailed in the note's structure.

What is the purpose of filing the form of note and the legal opinion?

The purpose of filing these documents is to provide transparency and legal clarity to investors. The form of the note details the precise terms, conditions, rights, and risks associated with the investment. The legal opinion from Faegre Baker Daniels LLP confirms the legality and proper issuance of these notes.

Is this a new issuance of stock by Wells Fargo or Western Digital?

No, this filing does not represent an issuance of new stock by either Wells Fargo or Western Digital. It is the issuance of a debt instrument (Medium-Term Notes) by Wells Fargo, where the value of that debt instrument is linked to the performance of Western Digital's existing common stock.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

This Form 8-K filing by Wells Fargo & Company on November 4, 2016, pertains to the issuance of Medium-Term Notes, Series K, with a 0.25% interest rate, maturing on November 6, 2023. These notes are equity-linked, specifically tied to the common stock performance of Western Digital Corporation. The primary purpose of this filing is to provide investors with the official documentation for these notes, including the form of the note itself and a legal opinion from Faegre Baker Daniels LLP. For investors, this filing signifies a specific structured financial product offered by Wells Fargo. The equity-linked nature means the return on these notes is dependent on the performance of Western Digital's stock, introducing a level of risk and potential reward tied to that specific equity. Investors should carefully review the terms and conditions of these Medium-Term Notes, particularly the linkage to Western Digital's stock, to understand the potential outcomes and risks involved.

Key Highlights

1Wells Fargo issued Medium-Term Notes, Series K, on November 3, 2016.
2The notes have a 0.25% interest rate and a maturity date of November 6, 2023.
3These are equity-linked notes, with their performance tied to the common stock of Western Digital Corporation.
4The filing includes the form of the Medium-Term Note as an exhibit.
5A legal opinion from Faegre Baker Daniels LLP regarding the notes is also filed.
6The filing is made in connection with a Registration Statement on Form S-3 previously filed by Wells Fargo.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Nov 4, 2016)

Summary

Key Highlights

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