New Issue: Wachovia prices $43.58 million 14.25% enhanced yield securities linked to Peabody

By Laura Lutz

Des Moines, Sept. 29 - Wachovia Corp. priced a $43,577,000 issue of 14.25% enhanced yield securities due Oct. 1, 2007 linked to Peabody Energy Corp. stock, according to a 424B5 filing with the Securities and Exchange Commission.

At maturity investors will receive par unless Peabody stock falls below the knock-in price of $25.515 during the life of the notes and finishes below the initial price of $36.45, in which case the payout is 27.4348 Peabody Energy shares.

Issuer:	Wachovia Corp.
Issue:	Enhanced yield securities
Underlying stock:	Peabody Energy Corp.
Amount:	$43,577,000
Maturity:	Oct. 1, 2007
Coupon:	14.25%, payable quarterly
Price:	Par
Payout at maturity:	Par unless Peabody stock falls below knock-in price of $25.515 during the life of the notes and finishes below the initial price of $36.45, in which case 27.4348 Peabody shares
Initial share price:	$36.45
Knock-in price:	$25.515, 70% of initial price
Exchange ratio:	17.188 Peabody shares, equal to par divided by initial share price
Pricing date:	Sept. 28
Settlement date:	Oct. 3
Underwriter:	Wachovia Securities

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