New Issue: Wachovia sells $6.257 million 11% enhanced yield securities linked to Under Armour

By Jennifer Chiou

New York, Dec. 28 - Wachovia Corp. priced $6.257 million of 11% enhanced yield securities due Jan. 10, 2008 linked to Under Armour, Inc. class A stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payment at maturity will be determined according to the performance of Under Armour stock. If the stock trades at or below $33.02, the knock-in price, and closes below $50.80, the initial price, between Dec. 27, 2006 and the valuation date, investors will receive a number of Under Armour shares equal to $1,000 divided by the initial stock price. The knock-in price is 65% of the initial price.

Otherwise, investors will receive par in cash.

Issuer:	Wachovia Corp.
Issue:	Enhanced yield securities
Underlying stock:	Under Armour, Inc. class A shares
Amount:	$6.257 million
Maturity:	Jan. 10, 2008
Coupon:	11%, payable monthly
Price:	Par
Payout at maturity:	If Under Armour stock closes below the knock-in price during the life of the notes and finishes below the initial price, 19.685 shares of Under Armour stock; otherwise par in cash
Initial price:	$50.80
Knock-in price:	$33.02, 65% of $50.80
Exchange ratio:	19.685
Pricing date:	Dec. 27
Settlement date:	Jan. 2
Agent:	Wachovia Securities
Fees:	2.25%
Distribution:	Off shelf

© 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.