What are these "Medium-Term Notes, Series K: Principal at Risk Securities"?

These are financial instruments issued by Wells Fargo that have a maturity date of December 1, 2020. The amount of principal repaid to the investor at maturity is dependent on the stock performance of CVS Health Corporation, H&R Block, Inc., and Harley-Davidson, Inc. Specifically, the principal repayment is linked to the performance of the stock that performs the worst among the three.

What does "Principal at Risk" mean for these notes?

"Principal at Risk" indicates that investors may not receive their full initial investment back at maturity. The amount of principal repaid can be reduced if the underlying stocks (CVS, H&R Block, Harley-Davidson) experience a decline in value, particularly if one of them is the lowest performer.

Where can I find the detailed terms and conditions of these Notes?

The detailed terms and conditions are available in Exhibit 4.1 filed with this 8-K report, titled "Form of Medium-Term Notes, Series K, Principal at Risk Securities..." You can also refer to the legal opinion provided by Faegre Baker Daniels LLP in Exhibit 5.1 for further clarity on the structure and legal aspects of the Notes.

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

Faegre Baker Daniels LLP is a law firm providing legal counsel. Their opinion, along with their consent to be named, is included to confirm the legality and structure of the Medium-Term Notes being issued, providing assurance to investors and regulators regarding the offering.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

Wells Fargo & Company filed an 8-K report on December 1, 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 Common Stock of CVS Health Corporation, the Common Stock of H&R Block, Inc. and the Common Stock of Harley-Davidson, Inc. due December 1, 2020." This filing primarily serves to provide investors with the official documentation and legal opinions related to these specific notes. For investors, this report signifies the creation and offering of a new debt-like instrument with a principal repayment contingent on the performance of a basket of three publicly traded stocks. The "Principal at Risk" nature of these securities means that the principal amount repaid at maturity (December 1, 2020) is subject to loss if the underlying stocks perform poorly. Investors should carefully review the terms of these notes, as detailed in the filed exhibits, to understand the specific conditions, risks, and potential returns associated with this investment.

Key Highlights

1Wells Fargo issued new "Medium-Term Notes, Series K: Principal at Risk Securities" on November 30, 2017.
2The principal repayment of these notes is linked to the lowest performing stock among CVS Health Corporation, H&R Block, Inc., and Harley-Davidson, Inc.
3The maturity date for these notes is December 1, 2020.
4The 8-K filing includes the form of the Notes as an exhibit.
5The filing also includes the legal opinion from Faegre Baker Daniels LLP regarding these Notes.
6This filing is primarily for informational and legal compliance purposes regarding the new securities issuance.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Dec 1, 2017)

Summary

Key Highlights

Frequently Asked Questions