Wachovia Announces Concurrent Offerings of Common Stock and Convertible Preferred Stock

The FINANCIAL — Wachovia Corporation (NYSE: WB) on April 14 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.

According to Wachovia, 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.

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"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.