Published on 9/12/2006 in the Prospect News Convertibles Daily.
New Issue: Wachovia prices $6.716 million 9.5% notes linked to Apple, Cisco
By Angela McDaniels
Seattle, Sept. 12 - Wachovia Corp. priced a $6.761 million issue of 9.5% enhanced yield securities due Sept. 20, 2007 linked to the common stock of Apple Computer, Inc. and Cisco Systems, Inc., according to a 424B5 filing with the Securities and Exchange Commission.
At maturity, investors will receive the Apple settlement value and the Cisco settlement value.
If Apple finishes above $79.1936 - 110% of its initial share price - the Apple settlement value will be $550 per $1,000 principal amount of notes. Otherwise, the Apple settlement value will equal Apple's final stock price multiplied by 6.945, which is $500 divided by the initial Apple share price.
If Cisco finishes above $23.7270 - 110% of its initial share price - the Cisco settlement value will be $550 per $1,000 principal amount of notes. Otherwise, the Cisco settlement value will equal Cisco's final stock price multiplied by 23.180, which is $500 divided by the initial Cisco share price.
| Issuer: | Wachovia Corp.
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| Issue: | Enhanced yield securities
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| Underlying stocks: | Apple Computer, Inc. and Cisco Systems, Inc.
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| Amount: | $6.761 million
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| Maturity: | Sept. 20, 2007
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| Coupon: | 9.5%, payable quarterly
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| Price: | Par
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| Payout at maturity: | The Apple settlement value and the Cisco settlement value
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| Apple settlement value: | If Apple finishes above the cap price, $550; otherwise, an amount equal to Apple's final stock price multiplied by 6.945
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| Cisco settlement value: | If Cisco finishes above the cap price, $550; otherwise, an amount equal to Cisco's final stock price multiplied by 23.180
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| Initial share price: | $71.9942 for Apple, $21.5700 for Cisco
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| Cap price: | $79.1936 for Apple, $23.7270 for Cisco; 110% of initial share price
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| Pricing date: | Sept. 8
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| Settlement date: | Sept. 15
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| Underwriter: | Wachovia Securities
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