Published on 2/21/2007 in the Prospect News Structured Products Daily.
New Issue: Wachovia sells $9.643 million 10% enhanced yield securities linked to Peabody Energy
By Laura Lutz
Washington, Feb. 21 - Wachovia Corp. priced a $9.643 million offering of 10% enhanced yield securities due March 5, 2008 linked to the common stock of Peabody Energy Corp., according to a 424B5 filing with the Securities and Exchange Commission.
Payment at maturity will be determined according to the performance of Peabody Energy stock. If the stock trades at or below $30.77, the knock-in price, during the life of the notes and closes below $41.03, the initial share price, on Feb. 27, 2008, investors will receive a number of Peabody Energy shares equal to $1,000 divided by the initial share price. The knock-in price is 75% of the initial share price.
Otherwise, investors will receive par in cash.
Issuer: | Wachovia Corp.
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Issue: | Enhanced yield securities
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Underlying stock: | Peabody Energy Corp.
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Amount: | $9.643 million
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Maturity: | March 5, 2008
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Coupon: | 10%, payable quarterly
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Price: | Par
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Payout at maturity: | If Peabody Energy stock trades at or below the knock-in price during the life of the notes and finishes below the initial share price, 24.3724 shares of Peabody Energy stock; otherwise, par in cash
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Initial share price: | $41.03
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Knock-in price: | $30.77, 75% of $41.03
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Exchange ratio: | 24.3724
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Pricing date: | Feb. 16
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Settlement date: | Feb. 22
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Agent: | Wachovia Securities
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Agent fees: | 2.25%
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Distribution: | Off shelf
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