8-KExhibits & Filings

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Aug 9, 2017)

Filed August 9, 2017For Securities:WFCWFC-PDWFC-PCWFC-PYWFC-PAWFC-PLWFCNPWFC-PZ

Summary

Wells Fargo & Company (WFC) filed an 8-K on August 9, 2017, to disclose the issuance of Medium-Term Notes, Series K, Principal at Risk Securities. These notes are linked to the performance of the S&P 500® Index, the Russell 2000® Index, and the EURO STOXX 50® Index, with a maturity date of August 9, 2027. The primary purpose of this filing is to provide the formal documentation and legal opinion related to this specific financial product. For investors, this filing indicates WFC's continued activity in offering structured financial products. The "Principal at Risk" nature of these notes means that investors' principal is not guaranteed and is subject to the performance of the underlying indices. This suggests the notes are designed for investors seeking potential enhanced returns in exchange for taking on significant risk, specifically tied to the weakest performance among the three major stock indices.

Key Highlights

  • 1Wells Fargo issued Medium-Term Notes, Series K, Principal at Risk Securities.
  • 2The notes are linked to the performance of the S&P 500®, Russell 2000®, and EURO STOXX 50® Indices.
  • 3The maturity date for these notes is August 9, 2027.
  • 4The filing includes the form of the note and a legal opinion from Faegre Baker Daniels LLP.
  • 5These notes are 'Principal at Risk', meaning investors can lose part or all of their principal investment.
  • 6The payout of the notes is tied to the lowest performing of the three specified indices.

Frequently Asked Questions

Principal at Risk Securities are a type of investment where the return to the investor is linked to the performance of an underlying asset or index, but the investor's initial principal investment is not guaranteed and can be lost if the underlying asset performs poorly. In this case, the performance of the S&P 500®, Russell 2000®, and EURO STOXX 50® Indices determines the return and potential loss of principal.

This means that the performance of the note is dictated by the index out of the S&P 500®, Russell 2000®, and EURO STOXX 50® that has the worst return. If one index performs very well but another performs very poorly, the poor performance of the lowest performing index will negatively impact the note's return and potentially lead to a loss of principal.

The Medium-Term Notes, Series K, have a maturity date of August 9, 2027.

Wells Fargo is filing an 8-K to formally disclose the terms and documentation of this new financial product offering. This includes filing the official form of the note and the legal opinion from their counsel, Faegre Baker Daniels LLP, as required by SEC regulations for material events or significant debt issuances.