What are "Principal at Risk Securities"?

Principal at Risk Securities are structured financial products where the return of the principal invested is dependent on the performance of an underlying asset, index, or other benchmark. In this case, if the specified stock market indices perform poorly, investors could receive less than their initial investment back at maturity.

What is the purpose of this 8-K filing?

The primary purpose of this 8-K filing is to publicly disclose the specific forms of the newly issued "Medium-Term Notes, Series S, Principal at Risk Securities" and the legal opinion concerning these notes. This is a regulatory requirement when such securities are issued.

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

Faegre Baker Daniels LLP is the legal counsel providing an opinion regarding the Notes. Their opinion, along with their consent, is included to provide assurance to investors and regulators about the legal aspects and structure of these securities.

Does this filing affect Wells Fargo's overall financial health or stock price directly?

This specific filing is about the issuance of debt securities and related documentation. While raising capital is part of a company's financial strategy, this 8-K does not directly report on the company's overall financial performance or provide guidance on its stock price. Investors should consult other filings (like 10-Q or 10-K) for a comprehensive view of WFC's financial health.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

This 8-K filing from Wells Fargo & Company (WFC) on June 6, 2018, primarily concerns the issuance of new debt securities. Specifically, the company has issued two series of "Medium-Term Notes, Series S, Principal at Risk Securities." These notes are linked to various stock market indices, with maturities in December 2021 and June 2023. For investors, the key takeaway is that Wells Fargo is raising capital through these structured notes. The "Principal at Risk" designation is crucial, indicating that the principal amount repaid at maturity could be less than the initial investment if the linked indices perform poorly. This filing provides the forms of these notes and the legal opinion regarding them, which are important disclosures for potential investors in these specific securities.

Key Highlights

1Wells Fargo issued new "Medium-Term Notes, Series S, Principal at Risk Securities."
2Two distinct note issuances are detailed, with maturities on December 6, 2021, and June 6, 2023.
3The performance of the notes is linked to the S&P 500® Index, and for one series, the lowest performing of the S&P 500® Index, Russell 2000® Index, and Dow Jones Industrial Average®.
4The term "Principal at Risk Securities" signifies that investors may lose a portion or all of their principal if the linked indices decline.
5The filing includes the specific forms of these notes as exhibits.
6A legal opinion from Faegre Baker Daniels LLP regarding the notes is also provided.
7This filing is in connection with a previously filed Registration Statement on Form S-3.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Jun 6, 2018)

Summary

Key Highlights

Frequently Asked Questions