New Issue: Wachovia sells $20.824 million 11.25% notes linked to Southwestern Energy

By Jennifer Chiou

New York, March 30 - Wachovia Corp. priced a $20.824 million offering of 11.25% enhanced yield securities due April 3, 2008 linked to the common stock of Southwestern Energy Co., according to a 424B5 filing with the Securities and Exchange Commission.

Payment at maturity will be determined according to the performance of Southwestern Energy stock. If the stock trades at or below $30.87, the knock-in price, during the life of the notes and closes below $41.16, the initial share price, investors will receive a number of Southwestern Energy shares equal to $1,000 divided by the initial share price. The knock-in price is 75% of the initial share price.

Otherwise, investors will receive par in cash.

Issuer:	Wachovia Corp.
Issue:	Enhanced yield securities
Underlying stock:	Southwestern Energy Co.
Amount:	$20.824 million
Maturity:	April 3, 2008
Coupon:	11.25%, payable quarterly
Price:	Par
Payout at maturity:	If Southwestern Energy stock trades at or below the knock-in price during the life of the notes and finishes below the initial share price, 24.2954 shares of Southwestern Energy stock; otherwise, par in cash
Initial share price:	$41.16
Knock-in price:	$30.87, 75% of $41.16
Exchange ratio:	24.2954
Pricing date:	March 29
Settlement date:	April 3
Agent:	Wachovia Securities
Fees:	2.25%

© 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.