Wachovia to sell enhanced yield securities linked to Phelps Dodge

By Jennifer Chiou

New York, July 12 - Wachovia Corp. is planning to offer notes in the enhanced yield securities structure linked to Phelps Dodge Corp. stock, according to a 424B5 filing with the Securities and Exchange Commission.

The securities will mature on Aug. 1, 2007 and will pay interest between 10% and 11%.

Payout at maturity will be par unless Phelps Dodge stock falls below the knock-in price during the life of securities and the final stock price is less than the initial price, in which case holders will receive a number of Phelps Dodge shares equal to $1,000 divided by the initial stock price.

The knock-in price will be 70% of the initial stock price.

Wachovia Securities will be the underwriter.

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