What are 'Principal at Risk Securities'?

Principal at Risk Securities are a type of investment where the return is linked to the performance of an underlying asset, such as stock indices. However, a portion or all of the principal invested can be lost if the performance of the underlying asset does not meet certain thresholds.

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

Filing these exhibits, such as the form of the note and the legal opinion, provides transparency and allows investors and the public to review the specific terms and legal standing of the issued debt securities. This is a standard regulatory requirement for such financial instruments.

Does the guarantee from Wells Fargo & Company protect the principal of these notes?

The guarantee from Wells Fargo & Company means that the issuer (Wells Fargo Finance LLC) will fulfill its obligations under the notes. However, the 'Principal at Risk' nature of the securities implies that the *amount* repaid is still subject to the performance of the linked indices. The guarantee ensures that Wells Fargo & Company will stand behind the issuer's promised payments, but it doesn't eliminate the risk of loss if the linked indices perform poorly as per the note's terms.

Are these notes being offered to the general public through this filing?

This 8-K filing is primarily for reporting purposes regarding the issuance of these notes, which were likely part of a broader registration statement. It provides the documentation but does not necessarily constitute an active offering to the general public at the time of filing. Potential investors would typically need to consult a prospectus or offering memorandum for details on how to purchase these securities.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

Wells Fargo & Company (WFC) filed an 8-K on January 23, 2020, to report on the issuance of new debt securities by its subsidiary, Wells Fargo Finance LLC. Specifically, the filing includes the form of the Medium-Term Notes, Series A, Principal at Risk Securities, linked to the performance of the Russell 2000® Index and the EURO STOXX 50® Index, with a maturity date of July 29, 2027. These notes are fully and unconditionally guaranteed by Wells Fargo & Company. This filing is primarily for informational purposes, providing investors with access to the legal documentation related to this specific debt issuance. The "Principal at Risk" nature of these notes means that the return, and potentially the principal amount, is tied to the performance of the underlying stock indices. Investors should carefully review the terms and risks associated with these types of structured financial products.

Key Highlights

1Wells Fargo Finance LLC issued new Medium-Term Notes, Series A, Principal at Risk Securities.
2The notes are linked to the performance of the Russell 2000® Index and the EURO STOXX 50® Index.
3The maturity date for these notes is July 29, 2027.
4Wells Fargo & Company (WFC) provides a full and unconditional guarantee for these notes.
5The filing includes the official form of the notes as an exhibit.
6The filing also includes a legal opinion from Faegre Baker Daniels LLP regarding the notes and the guarantee.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Jan 23, 2020)

Summary

Key Highlights

Frequently Asked Questions