By Jennifer Chiou
New York, March 22 - Wachovia Corp. priced a $14.603 million offering of 13% enhanced yield securities due Dec. 27, 2007 linked to the common stock of IntercontinentalExchange, Inc., according to a 424B5 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The payment at maturity will be determined according to the performance of IntercontinentalExchange stock. If the stock trades at or below $90.83, the knock-in price, and finishes below $129.75, the initial stock price, investors will receive a number of IntercontinentalExchange shares equal to $1,000 divided by the initial stock price. The knock-in price is 70% of the initial share price.
Otherwise, investors will receive par in cash.
| Issuer: | Wachovia Corp.
|
| Issue: | Enhanced yield securities
|
| Underlying stock: | IntercontinentalExchange, Inc.
|
| Amount: | $14.603 million
|
| Maturity: | Dec. 27, 2007
|
| Coupon: | 13%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If Intercontinental Exchange stock closes below the knock-in price during the life of the notes and finishes below the initial stock price, 7.7071 shares of IntercontinentalExchange stock; otherwise par in cash
|
| Initial stock price: | $129.75
|
| Knock-in price: | $90.83, 70% of $129.75
|
| Exchange ratio: | 7.7071
|
| Pricing date: | March 21
|
| Settlement date: | March 26
|
| Agent: | Wachovia Securities
|
| Agent fees: | 1.75%
|
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