What are 'Principal at Risk Securities'?

'Principal at Risk Securities' are investment products where the return of the principal amount invested is not guaranteed. The amount of principal returned to the investor at maturity is contingent upon the performance of an underlying asset or index. If the underlying asset performs poorly, investors may lose a portion or all of their principal.

What are the underlying assets for these Wells Fargo notes?

The underlying assets are specific market indices: the Energy Select Sector SPDR® Fund, the Financial Select Sector SPDR® Fund, and the S&P 500® Index. The performance of these indices will determine the return and principal repayment for the respective notes.

What is the purpose of filing these documents with the SEC?

The purpose of filing these documents (the forms of the notes and the legal opinion) with the SEC through an 8-K report is to provide transparency and regulatory disclosure to the public and investors regarding the terms and conditions of these new financial products being offered by Wells Fargo.

Are these notes suitable for all investors?

Given that these are 'Principal at Risk Securities,' they are generally suitable for investors who understand and can tolerate the risk of losing principal. Investors should carefully review the offering documents and consult with a financial advisor to determine if these notes align with their investment objectives and risk tolerance.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

This 8-K filing by Wells Fargo & Company concerns the issuance of new Medium-Term Notes, Series S, which are Principal at Risk Securities. These notes are linked to specific market indices: the Energy Select Sector SPDR® Fund, the Financial Select Sector SPDR® Fund, and the S&P 500® Index. The filing's primary purpose is to provide investors with the official documentation for these note offerings, including their forms and the legal opinion from Faegre Baker Daniels LLP, ensuring transparency around the terms and conditions of these structured products. Investors considering these notes should understand their principal-at-risk nature, meaning the return of principal is not guaranteed and depends on the performance of the underlying index. The filing details the specific maturity dates for each note: May 7, 2021, for the energy and financial sector notes, and May 9, 2022, for the S&P 500® linked notes. This filing is primarily for regulatory and disclosure purposes, providing access to the legal and structural documents governing these specific debt instruments.

Key Highlights

1Wells Fargo & Company has issued new Medium-Term Notes, Series S, designated as Principal at Risk Securities.
2The notes are linked to the performance of three distinct underlying assets: the Energy Select Sector SPDR® Fund, the Financial Select Sector SPDR® Fund, and the S&P 500® Index.
3Maturity dates vary: May 7, 2021, for notes linked to energy and financial sector ETFs, and May 9, 2022, for notes linked to the S&P 500® Index.
4The purpose of this 8-K filing is to officially disclose the forms of these notes and the legal opinion from Faegre Baker Daniels LLP.
5These are 'Principal at Risk Securities,' meaning investors could lose some or all of their principal investment.
6The filing relates to a Registration Statement on Form S-3 previously filed with the SEC.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (May 7, 2018)

Summary

Key Highlights

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