New Issue: Wachovia sells $4.567 million 10.25% enhanced yield securities linked to Circuit City

By Angela McDaniels

Seattle, Jan. 31 - Wachovia Corp. priced a $4.567 million offering of enhanced yield securities due Oct. 25, 2007 linked to the common stock of Circuit City Stores, Inc., according to a 424B5 filing with the Securities and Exchange Commission.

The nine-month securities will pay 7.6875% for an annualized rate of 10.25%. Interest is payable quarterly.

The payout at maturity will be par unless Circuit City stock trades at or below the knock-in price of $15.13 during the life of the securities and finishes below the initial share price of $20.17, in which case the payout will be a number of Circuit City shares equal to $1,000 divided by the initial share price.

Issuer:	Wachovia Corp.
Issue:	Enhanced yield securities
Underlying stock:	Circuit City Stores, Inc.
Amount:	$4.567 million
Maturity:	Oct. 25, 2007
Coupon:	10.25%, payable monthly
Price:	Par
Payout at maturity:	If Circuit City stock hits the knock-in price during the life of the securities and finishes below the initial price, 49.5786 Circuit City shares; otherwise, par in cash
Initial price:	$20.17
Knock-in price:	$15.13, 75% of $20.17
Pricing date:	Jan. 30
Settlement date:	Feb. 2
Underwriter:	Wachovia Securities
Underwriting discount:	2%

© 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.