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Wachovia Corporation Prices Successful Preferred Stock Offering Stock Issuance Raises $3.5 Billion of Tier 1 Capital CHARLOTTE, N.C.—Wachovia Corporation (NYSE:WB) announced that it priced a preferred stock issuance of $3.5 billion on February 5, 2008. The offering is expected to close on February 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 |
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