What are 'Principal at Risk Securities'?

Principal at Risk Securities are investment products where the potential return is linked to the performance of an underlying asset (in this case, specific stocks). However, unlike traditional bonds, the investor's principal amount may be at risk if the underlying asset performs poorly, meaning they could lose a portion or all of their initial investment.

Does this filing indicate Wells Fargo's financial health?

No, this 8-K filing primarily concerns the issuance of specific debt securities (Medium-Term Notes) and does not provide an update on Wells Fargo's overall financial performance or condition. It is focused on the details and documentation of these particular investment products.

What is the risk associated with these specific notes?

The primary risk is that the principal is at risk. The return on these notes is contingent on the performance of the basket of stocks. If the lowest performing stock in the respective basket declines significantly, investors could lose a substantial portion or all of their principal investment by the maturity date of December 24, 2020.

Where can I find more information about these notes?

More detailed information can be found in the exhibits attached to this 8-K filing. Specifically, Exhibit 4.1 and Exhibit 4.2 contain the 'Form of Medium-Term Notes' for each series, which outline the precise terms, conditions, risks, and potential payouts. The legal opinion from Faegre Baker Daniels LLP (Exhibit 5.1) also provides relevant context.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

Wells Fargo & Company/MN (WFC) filed an 8-K on December 27, 2017, to disclose the issuance of two series of Medium-Term Notes (Series K). These notes are structured as "Principal at Risk Securities," meaning their return is linked to the performance of specific underlying common stocks. The filing's primary purpose is to provide the associated documentation for these notes, including their forms and the legal opinion from Faegre Baker Daniels LLP. These notes are complex financial instruments, and investors should understand that the principal amount could be at risk depending on the performance of the selected equities. The filing does not contain detailed financial performance information for Wells Fargo itself but rather details about a specific debt issuance. Investors interested in these specific notes should review the exhibits for the full terms and conditions.

Key Highlights

1Wells Fargo issued two new series of Medium-Term Notes (Series K) on December 26, 2017.
2These notes are classified as 'Principal at Risk Securities.'
3The performance of the notes is tied to the lowest performing common stock among specified companies.
4One note's performance is linked to Lowe’s Companies, Intel, Delta Air Lines, and JPMorgan Chase.
5The second note's performance is linked to Delta Air Lines, Anadarko Petroleum, and Intel.
6The maturity date for both series of notes is December 24, 2020.
7The filing includes the forms of the notes and a legal opinion from Faegre Baker Daniels LLP.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Dec 27, 2017)

Summary

Key Highlights

Frequently Asked Questions