What are these new "Medium-Term Notes, Series S, Principal at Risk Securities"?

These are debt securities issued by Wells Fargo with a maturity date of June 19, 2023. Their return and principal repayment are directly tied to the performance of the lowest-performing among three major stock indices: the Russell 2000® Index, the Nasdaq-100 Index®, and the EURO STOXX 50® Index. The "Principal at Risk" designation means that if the performance of these indices is poor, investors could lose some or all of their initial investment.

Why is Wells Fargo filing an 8-K for these notes?

Companies file 8-K reports to announce material events that shareholders should know about. In this case, Wells Fargo is filing to formally disclose the issuance of these new financial instruments and to provide essential documentation, including the official form of the note and a legal opinion, which are important for investors to understand the terms and implications of these securities.

What is the significance of the notes being linked to the "lowest performing" index?

Linking the notes to the lowest performing index means that the investment's outcome is determined by the worst-performing asset among the group. This structure typically implies a higher potential return if the markets perform well but also carries a greater risk of principal loss if any one of the indices experiences a significant downturn.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Q: Where can I find more details about the terms of these notes?

The filing itself contains Exhibit 4.1, which is the 'Form of Medium-Term Notes, Series S, Principal at Risk Securities Linked to the Lowest Performing of the Russell 2000® Index, the Nasdaq-100 Index® and the EURO STOXX 50® Index due June 19, 2023.' This document will provide the specific details regarding the coupon payments, principal protection (or lack thereof), and calculation methodologies.

Summary

Wells Fargo & Company (WFC) filed an 8-K on June 19, 2018, to disclose the issuance of new financial instruments: Medium-Term Notes, Series S, Principal at Risk Securities. These notes are linked to the performance of the three major indices: the Russell 2000® Index, the Nasdaq-100 Index®, and the EURO STOXX 50® Index, with a maturity date of June 19, 2023. This filing primarily serves to provide investors and the market with the official documentation for these notes, specifically the form of the note itself and the legal opinion from Faegre Baker Daniels LLP. The "Principal at Risk" nature suggests that the return on these notes is tied to the performance of the underlying indices, and there is a risk of principal loss if the performance is unfavorable.

Key Highlights

1Wells Fargo & Company issued new "Medium-Term Notes, Series S, Principal at Risk Securities" on June 18, 2018.
2The notes are linked to the performance of the Russell 2000® Index, the Nasdaq-100 Index®, and the EURO STOXX 50® Index.
3The maturity date for these notes is June 19, 2023.
4The filing includes the form of the Note as an exhibit, detailing its structure and terms.
5A legal opinion from Faegre Baker Daniels LLP regarding the Notes is also filed as an exhibit.
6The term "Principal at Risk" indicates that investors may lose a portion or all of their principal investment depending on the performance of the linked indices.
7This filing is related to a previously filed Registration Statement on Form S-3 (File No. 333-221324).

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Jun 19, 2018)

Summary

Key Highlights

Frequently Asked Questions