Wachovia to price enhanced yield securities linked to commodity indexes

By Jennifer Chiou

New York, Aug. 1 - Wachovia Corp. plans to price one-year enhanced yield securities linked to a basket of commodity indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights (20%) of the S&P GSCI Brent Crude Oil Excess Return index, the S&P GSCI RBOB Gasoline Excess Return index, the S&P GSCI Wheat Excess Return index, the S&P GSCI Nickel Excess Return index and the S&P GSCI Lead Excess Return index.

The $10 securities will carry a coupon of 9% to 10%, payable quarterly. The exact coupon will be determined at pricing.

For each basket index, the payout will be $2 unless that index falls by 30% or more during the life of the securities and finishes below the initial level, in which case the payout will be $2 minus the index decline.

The payout at maturity will be the sum of the payouts for each basket index.

Wachovia Securities will be the underwriter.

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