CHARLOTTE, N.C., April 14 /PRNewswire-FirstCall/ -- Wachovia
Corporation (NYSE: WB) today announced that it has commenced concurrent
offerings of common stock and Non-Cumulative Perpetual Convertible Class A
preferred stock, Series L, with a liquidation preference of $1,000 per
share, for an aggregate of $7 billion. The completion of either offering is
not conditioned on the success of the other. Wachovia Corporation also
expects to grant the underwriters for the offerings an over-allotment
option to purchase additional shares of the common stock and an
over-allotment option to purchase additional shares of the convertible
preferred stock. The offerings are being conducted as public offerings
registered under the Securities Act of 1933, as amended.
"We are taking appropriate and prudent actions to further enhance our
capital position in response to unprecedented economic conditions," said
Ken Thompson, Wachovia's chairman and chief executive officer. "These
actions will significantly increase our capital ratios, and enhance our
ongoing financial flexibility. We're extremely pleased with the strong
expressions of interest we've already received regarding these issuances,
which demonstrate the confidence of investors in our fundamental strengths
and long-term outlook."
The convertible preferred stock will be convertible into shares of
Wachovia Corporation's common stock, plus cash in lieu of fractional
shares. The non-cumulative dividend rate, conversion rate and other terms
will be determined by negotiations between Wachovia Corporation and the
underwriters of the convertible preferred stock offering. An application
will be made to list the convertible preferred stock on the New York Stock
Exchange under the symbol "WBPrL."
Wachovia Corporation intends to use the net proceeds from the sale of
the common stock and the convertible preferred stock for general corporate
purposes.
Wachovia Securities is serving as global coordinator and joint
bookrunning manager and Goldman, Sachs & Co. is serving as joint
bookrunning manager of these offerings. The offerings will be made under
Wachovia Corporation's shelf registration statement filed with the
Securities and Exchange Commission.
Any offer of securities will be made by means of the prospectus
supplement and accompanying prospectus relating to each offering. When
available, copies of the prospectus supplement and accompanying prospectus
relating to each offering can be obtained by contacting: Wachovia
Securities, Attn: Equity Syndicate, 375 Park Avenue, New York, New York
10152-4077 or email: equity.syndicate@wachovia.com; or Goldman, Sachs &
Co., Attn: Prospectus Dept., 85 Broad St., New York, NY 10004, Fax: 212 902
9316 or email at prospectus-ny@ny.email.gs.com.
About Wachovia
Wachovia Corporation (NYSE: WB) is one of the nation's largest
diversified financial services companies, with assets of $808.9 billion and
market capitalization of $53.8 billion at March 31, 2008. 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 3,300 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 $1.1 trillion in client assets
through 18,600 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.
Forward-Looking Statements
This news release contains various forward-looking statements. A
discussion of various factors that could cause Wachovia Corporation's
actual results to differ materially from those expressed in such
forward-looking statements is included in Wachovia's filings with the
Securities and Exchange Commission, including its Current Report on Form
8-K, dated April 14, 2008.
The issuer has filed a registration statement (including prospectus)
with the SEC for the offerings to which this communication relates. Before
you invest, you should read the prospectus in that registration statement,
the preliminary prospectus supplement and other documents the issuer has
filed with the SEC for more complete information about the issuer and these
offerings. You may get these documents for free by visiting EDGAR on the
SEC Web site at http://www.sec.gov. Alternatively, the issuer, any underwriter or
any dealer participating in the offerings will arrange to send you the
relevant prospectus if you request it by calling toll-free 1-800-326-5897
or you may e-mail a request to syndicate.ops@wachovia.com.
SOURCE Wachovia Corporation
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Related links:
http://www.wachovia.com
http://www.evergreeninvestments.com
CONTACT:
Media, Christy Phillips-Brown,
+1-704-383-8178, or Mary Eshet, +1-704-383-7777, or Investors,
Alice Lehman, +1-704-374-4139, or Ellen Taylor, +1-212-214-1904,
all of Wachovia Corporation
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