New Issue: Wachovia sells $7.534 million 12.5% notes linked to XM Satellite Radio

By Angela McDaniels

Seattle, Dec. 29 - Wachovia Corp. priced a $7.534 million issue of 12.5% enhanced yield securities due Jan. 10, 2008 linked to the class A common stock of XM Satellite Radio Holdings Inc., according to a 424B5 filing with the Securities and Exchange Commission.

The payout at maturity will be par unless XM Satellite Radio stock trades at or below the knock-in price of $8.71 during the life of the securities and finishes below its initial share price of $14.52, in which case the payout will be a number of XM Satellite Radio shares equal to $1,000 divided by the initial share price.

Issuer:	Wachovia Corp.
Issue:	Enhanced yield securities
Underlying stock:	XM Satellite Radio Holdings Inc.
Amount:	$7.534 million
Maturity:	Jan. 10, 2008
Coupon:	12.5%, payable quarterly
Price:	Par
Payout at maturity:	If XM Satellite Radio stock trades below the knock-in price during the life of the securities and finishes below the initial price, 68.8705 shares of XM Satellite Radio; otherwise par in cash
Initial share price:	$14.52
Knock-in price:	$8.71, 60% of initial share price
Pricing date:	Dec. 28
Settlement date:	Jan. 3
Underwriter:	Wachovia Securities
Underwriting discount:	2.25%

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