Wachovia plans auto redeemable enhanced-yield securities linked to Schlumberger for Eksportfinans

By Susanna Moon

Chicago, Feb. 4 - Eksportfinans ASA plans to price an issue of auto-redeemable enhanced-yield securities due Feb. 25, 2009 linked to the common stock of Schlumberger, Ltd. via Wachovia Capital Markets, LLC, according to a 424B5 filing with the Securities and Exchange Commission.

The securities are expected to bear interest at between 10% and 11% per year, with the exact level to be set at pricing. Interest will be payable quarterly.

If Schlumberger stock trades at or above its initial price at any time, the securities will be automatically called for par plus accrued interest.

If the securities are not redeemed early, the payout at maturity will be par unless Schlumberger stock falls below the knock-in level - 75% of the initial share price - during the life of the securities and finishes below the initial share price. In that case, the payout will be a number of Schlumberger shares equal to $1,000 divided by the initial share price.

The notes are expected to price and settle in February.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.