8-KExhibits & Filings

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Feb 2, 2017)

Filed February 2, 2017For Securities:WFCWFC-PDWFC-PCWFC-PYWFC-PAWFC-PLWFCNPWFC-PZ

Summary

This 8-K filing from Wells Fargo & Company on February 2, 2017, primarily serves to disclose the issuance of new financial instruments. Specifically, the company is filing the terms and associated legal opinions for "Medium-Term Notes, Series K, Principal at Risk Securities Linked to the S&P 500® Index". This indicates the company is engaging in the issuance of structured debt products designed to offer returns linked to the performance of the S&P 500 index, with a potential for principal loss. For investors, this filing highlights Wells Fargo's ongoing efforts to diversify its funding sources and offer investment products with specific risk-return profiles. The "Principal at Risk" nature of these notes is a critical detail, signaling that the repayment of the principal amount is subject to the performance of the underlying S&P 500 index, meaning investors could lose some or all of their principal investment.

Key Highlights

  • 1Wells Fargo issued "Medium-Term Notes, Series K, Principal at Risk Securities Linked to the S&P 500® Index" on February 2, 2017.
  • 2The filing includes the form of these specific Medium-Term Notes as an exhibit.
  • 3Legal opinion from Faegre Baker Daniels LLP regarding these Notes is also filed.
  • 4The "Principal at Risk" designation is a significant feature, indicating potential loss of invested principal.
  • 5These notes are linked to the performance of the S&P 500® Index.
  • 6The filing is related to a Registration Statement on Form S-3 previously filed by Wells Fargo.
  • 7This action demonstrates Wells Fargo's continued activity in issuing structured financial products.

Frequently Asked Questions

'Principal at Risk Securities' are investment products where the repayment of the initial investment (principal) is not guaranteed and can be lost, fully or partially, depending on the performance of an underlying asset or index, in this case, the S&P 500® Index.

The issuance of these notes indicates Wells Fargo's strategy to raise capital through various debt instruments, including structured products, and to offer investment opportunities to clients that are tied to market performance.

The full details regarding the terms and conditions of these Medium-Term Notes, Series K, can be found in Exhibit 4.1 filed with this 8-K, which is the 'Form of Medium-Term Notes, Series K, Principal at Risk Securities Linked to the S&P 500® Index'.

Faegre Baker Daniels LLP provided a legal opinion regarding the Notes, as indicated by Exhibits 5.1 and 23.1. This is a standard procedure to ensure the legal compliance and structure of the issued financial instruments.