What are these 'Principal at Risk Securities'?

These are structured financial products where the return of principal is not fully guaranteed and depends on the performance of underlying assets, in this case, the S&P 500®, Russell 2000®, and iShares® MSCI EAFE ETF. If the performance of the linked assets is poor, investors may lose a portion or all of their principal investment.

What is the purpose of filing the 'Form of Note' and the legal opinion?

Filing the 'Form of Note' provides investors with the detailed terms and conditions of the security, including how its performance is calculated and the conditions under which principal is at risk. The legal opinion from Faegre Baker Daniels LLP offers assurance regarding the legality and validity of the notes being issued.

Is this a new offering of stock or a bond?

This filing pertains to the issuance of 'Medium-Term Notes, Series S, Principal at Risk Securities'. These are not traditional stocks or bonds, but rather a type of structured note with a principal repayment that is contingent on the performance of specific market indices.

What is the relevance of the S&P 500®, Russell 2000®, and iShares® MSCI EAFE ETF to these notes?

These indices and the ETF serve as the underlying reference assets for the notes. The performance of the 'lowest performing' of these three will determine the return and the repayment of principal for the notes.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

Wells Fargo & Company (WFC) filed an 8-K on August 13, 2018, to report on the issuance of new financial instruments, specifically Medium-Term Notes, Series S, Principal at Risk Securities. These notes are linked to the performance of three major indices: the S&P 500® Index, the Russell 2000® Index, and the iShares® MSCI EAFE ETF. The maturity date for these notes is May 13, 2020. This filing is part of a broader Registration Statement on Form S-3 previously submitted to the SEC. The primary purpose of this 8-K filing is to make available the specific documentation related to this note issuance. Investors interested in this particular financial product will find the form of the note itself and the legal opinion from Faegre Baker Daniels LLP included as exhibits. This disclosure is important for understanding the structure, terms, and legal standing of these principal-at-risk securities offered by Wells Fargo.

Key Highlights

1Wells Fargo issued Medium-Term Notes, Series S, Principal at Risk Securities.
2The notes are linked to the performance of the S&P 500® Index, Russell 2000® Index, and iShares® MSCI EAFE ETF.
3The maturity date for these notes is May 13, 2020.
4The filing includes the form of the note as an exhibit.
5A legal opinion from Faegre Baker Daniels LLP regarding the notes is also filed.
6This filing is associated with a previously filed Registration Statement on Form S-3.
7The securities are described as 'Principal at Risk Securities', indicating potential loss of principal.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Aug 13, 2018)

Summary

Key Highlights

Frequently Asked Questions