"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.
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