Stock Issuance Raises $3.5 Billion of Tier 1 Capital
CHARLOTTE, N.C., Feb. 6 /PRNewswire-FirstCall/ -- Wachovia Corporation
(NYSE: WB) announced that it priced a preferred stock issuance of $3.5
billion on Feb. 5, 2008. The offering is expected to close on Feb. 8, 2008.
"The strong investor demand is gratifying and the offering will further
solidify our capital position," said Tom Wurtz, Wachovia Chief Financial
Officer. "This will provide Wachovia a very strong Tier 1 capital ratio as
we begin 2008 and we expect that we will continue to increase our ratio
over the remainder of the year."
The $3.5 billion perpetual preferred stock will pay a dividend of 7.98%
for 10 years and thereafter change to a floating interest rate. Wachovia
may redeem the preferred stock after 10 years.
The investor group consisted of approximately 80 major domestic fixed
income investors. Wachovia Securities served as the sole book runner on the
transaction.
Wachovia's Tier 1 capital ratio at December 31, 2007 was 7.2%. On a pro
forma basis as of year-end, Wachovia estimates that including this
preferred stock offering, Wachovia's Tier 1 capital ratio would have been
approximately 7.9%. Wachovia plans to continue building Tier 1 capital
through retained earnings over the course of 2008.
About Wachovia
Wachovia Corporation (NYSE: WB) is one of the nation's largest
diversified financial services companies, with assets of $782.9 billion and
market capitalization of $75.3 billion at December 31, 2007. Wachovia
provides a broad range of retail banking and brokerage, asset and wealth
management, and corporate and investment banking products and services to
customers through 3,400 retail financial centers in 21 states from
Connecticut to Florida and west to Texas and California, and nationwide
retail brokerage, mortgage lending and auto finance businesses. Globally,
clients are served in selected corporate and institutional sectors and
through more than 40 international offices. Our retail brokerage operations
under the Wachovia Securities brand name manage more than $1.2 trillion in
client assets through 17,900 registered representatives in 1,500 offices
nationwide. Online banking is available at wachovia.com; online brokerage
products and services at wachoviasec.com; and investment products and
services at evergreeninvestments.com.
SOURCE Wachovia Corporation
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Related links:
http://www.wachovia.com
CONTACT:
Media, Christy Phillips-Brown,
+1-704-383-8178, or Mary Eshet, +1-704-383-7777; Investors, Alice
Lehman, +1-704-374-4139, or Ellen Taylor, +1-212-214-1904, all of
Wachovia Corporation
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