What are "Principal at Risk Securities"?

Principal at Risk Securities are investment products where the investor's return is linked to the performance of an underlying asset (like an index or ETF), but the investor may lose a portion or all of their initial investment (principal) if the underlying asset performs poorly. The exact terms and conditions for potential principal loss are detailed in the specific note offering documents, which are not fully elaborated on in this 8-K but are referenced.

Does this filing provide details on the terms or pricing of these new notes?

No, this 8-K filing is primarily an informational and disclosure document. It provides the forms of the notes and a legal opinion. It does not include detailed terms, pricing, coupon rates, or specific risk disclosures beyond the general "Principal at Risk" nature of the securities. Investors would need to refer to the related offering documents or prospectus supplements for such details.

What is the significance of these new Medium-Term Notes for Wells Fargo?

The issuance of these Medium-Term Notes signifies Wells Fargo's continued activity in debt capital markets and its offering of structured financial products to investors. It represents a way for the company to raise capital while providing investors with potentially diversified investment opportunities tied to market performance, albeit with inherent risks.

Who is Faegre Baker Daniels LLP and why is their opinion included?

Faegre Baker Daniels LLP is a law firm. Their opinion is included as a legal counsel's assessment of the validity and legality of the Medium-Term Notes being issued by Wells Fargo. This is a standard requirement for confirming the legal standing of such financial instruments.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

This 8-K filing from Wells Fargo & Company on April 28, 2017, primarily serves to disclose the issuance of several series of Medium-Term Notes, Series K. These notes are structured as "Principal at Risk Securities" and are linked to the performance of various indices and ETFs, including the S&P 500® Index, Russell 2000® Index, iShares® MSCI EAFE ETF, and iShares® MSCI Emerging Markets ETF. The filing includes the forms of these notes and the legal opinion from Faegre Baker Daniels LLP regarding their issuance. For investors, this filing indicates that Wells Fargo is actively engaging in the creation and distribution of structured financial products. The "Principal at Risk" nature of these notes means that investors could lose a portion or all of their principal investment if the underlying indices or ETFs do not perform favorably. While this filing doesn't provide financial statements or details on the terms of the Notes themselves (such as coupon rates or specific risk factors beyond the principal at risk designation), it is an administrative filing to ensure compliance with disclosure requirements for these new debt instruments.

Key Highlights

1Wells Fargo & Company issued multiple series of Medium-Term Notes, Series K, on April 27, 2017.
2These notes are classified as "Principal at Risk Securities," meaning investors may lose principal.
3The performance of these notes is linked to the S&P 500® Index, Russell 2000® Index, iShares® MSCI EAFE ETF, and iShares® MSCI Emerging Markets ETF.
4Maturity dates for these notes range from April 30, 2019, to April 30, 2025.
5The filing's purpose is to submit the forms of these notes and the legal opinion from Faegre Baker Daniels LLP.
6This is an informational filing related to the company's debt issuance activities and prior registration statements.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Apr 28, 2017)

Summary

Key Highlights

Frequently Asked Questions