Summary
Wells Fargo & Company filed an 8-K report on March 2, 2017, to disclose the issuance of new financial instruments. Specifically, the company issued "Medium-Term Notes, Series K, Principal at Risk Securities Linked to the Lowest Performing of the S&P 500® Index and the Russell 2000® Index due December 3, 2018". This filing serves to provide the necessary documentation for investors, including the form of the Note itself and a legal opinion from Faegre Baker Daniels LLP regarding these securities. From an investor's perspective, these are "Principal at Risk Securities," indicating that the return of principal is not guaranteed and may be subject to the performance of the underlying indices. The specific structure links the performance to the *lowest* performing of the S&P 500® Index and the Russell 2000® Index, suggesting a potentially higher risk profile and possibly higher coupon payments for investors willing to take on that risk. The maturity date is set for December 3, 2018.
Key Highlights
- 1Wells Fargo & Company announced the issuance of "Medium-Term Notes, Series K, Principal at Risk Securities" on March 1, 2017.
- 2These notes are linked to the performance of the S&P 500® Index and the Russell 2000® Index.
- 3The principal amount is at risk, meaning investors could lose part or all of their investment.
- 4The specific payout structure is tied to the *lowest* performing of the two mentioned indices.
- 5The maturity date for these notes is December 3, 2018.
- 6The filing includes the form of the Note and a legal opinion from Faegre Baker Daniels LLP.
- 7This issuance is related to a Registration Statement on Form S-3 previously filed by Wells Fargo.