Wachovia to sell enhanced yield securities linked to GM

By Angela McDaniels

Seattle, Aug. 11 - Wachovia Corp. plans to offer notes in the enhanced yield securities structure linked to General Motors Corp. stock, according to a 424B5 filing with the Securities and Exchange Commission.

The securities will mature on Sept. 5, 2007.

Interest will be payable quarterly and will be between 16% and 17%, to be determined at pricing.

Payout at maturity will be par unless General Motors stock falls below the knock-in price during the life of securities and finishes below its initial price, in which case noteholders will receive a number of General Motors shares equal to $1,000 divided by the initial stock price.

The knock-in price will be 60% of the initial stock price.

Wachovia Securities will be the underwriter.

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