By E. Janene Geiss
Philadelphia, Feb. 28 - Wachovia Corp. priced a $3.345 million offering of 12.5% enhanced yield securities due March 5, 2008 linked to the common stock of AMR Corp., according to a 424B5 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The payment at maturity will be determined according to the performance of AMR stock. If the stock trades at or below $23.765, the knock-in price, and closes below $33.95, the initial stock price, investors will receive a number of AMR shares equal to $1,000 divided by the initial stock price. The knock-in price is 70% of the initial share price.
Otherwise, investors will receive par in cash.
| Issuer: | Wachovia Corp.
|
| Issue: | Enhanced yield securities
|
| Underlying stock: | AMR Corp.
|
| Amount: | $3.345 million
|
| Maturity: | March 5, 2008
|
| Coupon: | 12.5%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If AMR stock closes below the knock-in price during the life of the notes and finishes below the initial stock price, 29.455 shares of AMR stock; otherwise par in cash
|
| Initial stock price: | $33.95
|
| Knock-in price: | $23.765, 70% of $33.95
|
| Exchange ratio: | 29.455
|
| Pricing date: | Feb. 27
|
| Settlement date: | March 2
|
| Agent: | Wachovia Securities
|
| Agent fees: | 2.25%
|
| Distribution: | Off shelf
|
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