New Issue: Wachovia sells $9.561 million 9.5% enhanced yield securities linked to Whole Foods

By Jennifer Chiou

New York, June 1 – Wachovia Corp. priced a $9.561 million offering of 9.5% enhanced yield securities due June 5, 2008 linked to the common stock of Whole Foods Market, Inc., according to a 424B5 filing with the Securities and Exchange Commission.

Payment at maturity will be determined according to the performance of Whole Foods stock. If the stock trades at or below $32.88, the knock-in price, during the life of the notes and closes below $41.10, the initial share price, investors will receive a number of Whole Foods shares equal to $1,000 divided by the initial share price. The knock-in price is 80% of the initial share price.

Otherwise, investors will receive par in cash.

Wachovia Securities is the agent.

Issuer:	Wachovia Corp.
Issue:	Enhanced yield securities
Underlying stock:	Whole Foods Market, Inc.
Amount:	$9.561 million
Maturity:	June 5, 2008
Coupon:	9.5%, payable quarterly
Price:	Par
Payout at maturity:	If Whole Foods stock trades at or below the knock-in price during the life of the notes and finishes below the initial share price, 24.3309 shares of Whole Foods stock; otherwise, par in cash
Initial share price:	$41.10
Knock-in price:	$32.88, 80% of $41.10
Exchange ratio:	24.3309
Pricing date:	May 31
Settlement date:	June 5
Agent:	Wachovia Securities
Fees:	2.25%

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