What are 'Principal at Risk Securities'?

'Principal at Risk Securities' are a type of investment where the investor's principal is not fully protected. The amount of principal returned at maturity depends on the performance of an underlying asset, such as an index or ETF. If the underlying asset performs poorly, the investor may lose a significant portion or even all of their initial investment.

What specific market instruments are these notes linked to?

Two series of notes are linked to the lowest performing of the S&P 500® Index, the Russell 2000® Index, and the EURO STOXX 50® Index. Another series is linked to the performance of the SPDR® S&P® Oil & Gas Exploration & Production ETF.

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

The purpose of filing these exhibits is to provide the official documentation of the issued Medium-Term Notes, Series S, and the legal opinion concerning them. This is a regulatory requirement, especially when done in connection with a previously filed registration statement (Form S-3), to ensure transparency for investors about the nature and terms of these financial instruments.

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 potential loss of their principal investment, and who are seeking exposure to the performance of the linked indices or ETF, potentially with specific payoff structures. Investors should conduct thorough due diligence and consult with a financial advisor before investing.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

This Wells Fargo & Company 8-K filing primarily serves to disclose the issuance of three series of Medium-Term Notes, Series S, classified as Principal at Risk Securities. These notes are linked to the performance of specific market indices or an ETF, with maturities in August 2020 and August 2022. The filing includes the forms of these notes and a legal opinion from Faegre Baker Daniels LLP concerning their issuance, as required in connection with a prior Form S-3 registration statement. For investors, this filing indicates that Wells Fargo is actively engaging in the issuance of structured financial products. The 'Principal at Risk' nature of these notes means that investors could lose a portion or all of their principal investment if the underlying assets underperform. Investors should carefully review the terms and risks associated with these specific notes, as detailed in the referenced exhibits, particularly concerning the performance triggers and the potential for principal loss.

Key Highlights

1Wells Fargo & Company issued three series of Medium-Term Notes, Series S, designated as 'Principal at Risk Securities'.
2The notes are linked to the performance of the S&P 500® Index, Russell 2000® Index, EURO STOXX 50® Index, and the SPDR® S&P® Oil & Gas Exploration & Production ETF.
3Maturity dates for these notes are August 29, 2022, and August 27, 2020.
4The filing includes the specific forms of these 'Principal at Risk' notes as exhibits.
5Legal opinions from Faegre Baker Daniels LLP regarding the notes and their consent are also filed.
6This disclosure is made in conjunction with a previously filed Form S-3 registration statement.
7The 'Principal at Risk' designation highlights the potential for loss of invested principal for noteholders.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Sep 5, 2018)

Summary

Key Highlights

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