New Issue: Wachovia sells $17.69 million 12.5% reverse exchangeables linked to Ford

By Laura Lutz

Des Moines, Oct. 31 - Wachovia Corp. priced $17.69 million of 12.5% reverse convertible notes due Aug. 15, 2007 linked to Ford Motor Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payment at maturity will be determined according to the performance of Ford stock. If the stock trades at or below $5.775, the knock-in price, and closes below $8.25, the initial price, between Oct. 30, 2006 and Aug. 8, 2007, investors will receive a number of Ford shares equal to $1,000 divided by the initial stock price. The knock-in price is 70% of the initial price.

Otherwise, investors will receive par in cash.

Issuer:	Wachovia Corp.
Issue:	Reverse convertible notes
Underlying stock:	Ford Motor Co.
Amount:	$17.69 million
Maturity:	Aug. 15, 2007
Coupon:	12.5%, payable monthly
Price:	Par
Payout at maturity:	If Ford stock closes below the knock-in price during the life of the notes and finishes below the initial price, 121.21 shares of Ford stock; otherwise par in cash
Initial price:	$8.25
Knock-in price:	$5.775, 70% of initial price
Exchange ratio:	121.21
Pricing date:	Oct. 30
Settlement date:	Nov. 2
Agent:	ABN Amro Inc.
Agent fee:	2%
Distribution:	Off shelf

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