Wachovia to issue 0% enhanced growth notes inversely linked to S&P 500

By Angela McDaniels

Seattle, Sept. 19 - Wachovia Corp. plans to price an issue of 0% enhanced growth bearish return securities due Oct. 5, 2007 inversely linked to the S&P 500 index, according to a 424B5 filing with the Securities and Exchange Commission.

If the index declines, the payout at maturity will be par plus triple the absolute value of the decline. The return will be capped at between $3.50 and $4.00 per $10.00 security, with the exact cap to be determined at pricing.

Investors will lose 1% for each 1% gain on the index, with a maximum loss of $5.00 per $10.00 security.

Wachovia Securities will be the underwriter.

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