What are "Principal at Risk Securities"?

Principal at Risk Securities are a type of structured note where the return of the principal investment is linked to the performance of an underlying asset, in this case, the S&P 500® Index. This means that if the index performs poorly, investors may lose a portion or all of their principal investment, in addition to not receiving any coupon payments.

Why is Wells Fargo issuing these specific types of notes?

Companies like Wells Fargo issue structured notes to diversify their funding sources and potentially attract a wider range of investors interested in products with specific risk-return profiles linked to market indices. The "Principal at Risk" feature may appeal to investors seeking potential upside participation in the S&P 500® while being aware of the downside risk.

What is the significance of the "Guarantee" from Wells Fargo & Company?

The Guarantee means that Wells Fargo & Company (the parent entity) is legally obligated to ensure that the obligations of Wells Fargo Finance LLC under these Medium-Term Notes are met. This provides an additional layer of credit assurance for investors, as they can look to the creditworthiness of the parent company if the subsidiary defaults.

What is the role of Faegre Baker Daniels LLP in this filing?

Faegre Baker Daniels LLP has provided a legal opinion regarding the Notes and the Guarantee. This opinion is crucial for investors as it confirms the legal validity and enforceability of the debt instruments and the parent company's commitment to back them, which is a standard practice for such debt issuances.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

Wells Fargo & Company/MN (WFC) filed an 8-K on November 4, 2019, primarily to disclose the issuance of new Medium-Term Notes, Series A. These notes are "Principal at Risk Securities" linked to the S&P 500® Index, with maturities in November 2021 and November 2022. The notes are fully and unconditionally guaranteed by Wells Fargo & Company. The primary purpose of this filing is to provide investors with the official documentation related to these new debt issuances. This includes the forms of the notes themselves and a legal opinion from Faegre Baker Daniels LLP concerning the validity of the notes and the associated guarantee from Wells Fargo & Company. Investors interested in the company's debt structure and funding activities will find this filing relevant.

Key Highlights

1Wells Fargo Finance LLC issued new Medium-Term Notes, Series A, on November 3-4, 2019.
2The notes are "Principal at Risk Securities" linked to the performance of the S&P 500® Index.
3Maturity dates for the notes are November 4, 2021, and November 3, 2022.
4Wells Fargo & Company provides a full and unconditional guarantee for these notes.
5The 8-K filing includes the forms of the notes and a legal opinion from Faegre Baker Daniels LLP.
6This filing is related to a Form S-3 registration statement previously filed by the company and its subsidiary.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Nov 4, 2019)

Summary

Key Highlights

Frequently Asked Questions