Claymore YieldStream(SM) 20 Attracts $47 Million in First Structured Product Linked to the Strategy
May 04 2007 - 8:00AM
Business Wire
Claymore Securities, Inc. announced that a $47 million public
offering of 11.0% Enhanced Yield Securities linked to the Claymore
YieldStreamSM 20 Series 2007-A closed yesterday. The Enhanced Yield
Securities are securities that were issued by Eksportfinans ASA and
underwritten by Wachovia Capital Markets, LLC. The securities will
mature on April 30, 2008 and trade on the American Stock Exchange
under the ticker symbol EKF. The Claymore YieldStreamSM 20 Series
2007-A represents twenty common stocks in six industry sectors. The
constituent stocks of the Claymore YieldStreamSM 20 were selected
by Claymore with the objective of creating a moderately diversified
basket of twenty stocks that is designed to produce an attractive
yield in a structure that provides income in exchange for potential
downside exposure to the price performance of the constituent
stocks of the Claymore YieldStreamSM 20. Investors in the
securities will receive interest paid monthly at a rate of 11% per
annum on the initial per-share principal amount of $20. Unlike a
traditional debt security, the return of principal of the
securities is dependent on the performance of the common stocks in
the Claymore YieldStreamSM 20. Each $1 of the $20 principal amount
of the securities is exposed to the downside performance of a
common stock in the Claymore YieldStreamSM 20, but only if that
stock drops by 25% or more during the term of the securities.
Investors in the securities will not participate in any upside
performance of the stocks in the Claymore YieldStreamSM 20.
Claymore CEO David Hooten said, "We're excited about the market's
reception of our first structured product, designed in partnership
with Wachovia and Eksportfinans." Richard Silva, the co-head of
Wachovia Capital Markets, LLC equity structured products group in
New York, said, �For the first time, investors seeking higher
yields in the equity-linked securities market have access to an
independently selected, diversified portfolio designed specifically
for the structured product market. Claymore and Wachovia are at the
forefront of providing investors with innovative investment
strategies and products, and we are thrilled to have partnered with
them on the securities linked to the YieldStream 20. We believe
that this approach introduces a new generation of structured
products, and we look forward to continuing our partnership with
Claymore to deliver best-of-breed investment strategies and
products to the marketplace.� The Enhanced Yield Securities linked
to the Claymore YieldStreamSM 20 Series 2007-A were issued by
Eksportfinans ASA. Eksportfinans ASA is Norway�s sole specialized
export finance institution with total assets of USD$26.4 billion as
of December 31, 2006. It was established in 1962 by a consortium of
private Norwegian banks with the cooperation of the Norwegian
authorities to provide government-supported finance for the export
of ships and capital goods and commercial financing for a broad
range of exports. Claymore Securities, Inc. is a privately-held
financial services company offering unique investment solutions for
financial advisors and their valued clients. As of March 31, 2007,
Claymore entities have provided supervision, management, servicing
or distribution on over $16 billion in assets through closed-end
funds, unit investment trusts, mutual funds, separately managed
accounts, exchange-traded funds and Claymore MACROshares.
Additional information on Claymore is available at
www.claymore.com. Registered investment products are sold by
prospectus only and investors should read the prospectus carefully
before investing. Wachovia Securities is the trade name for the
corporate and investment banking services of Wachovia Corporation
and its subsidiaries, including Wachovia Capital Markets, LLC, the
underwriter for the offering. Debt and equity underwriting,
trading, research and sales, loan syndications agent services, and
corporate finance and M&A advisory services are offered by
Wachovia Capital Markets, LLC, member NASD, NYSE and SIPC.
Mezzanine capital, private equity, municipal securities trading and
sales, cash management, credit, international, leasing and risk
management products and services are offered by various non-broker
dealer subsidiaries of Wachovia Corporation. The securities are not
sponsored, endorsed or sold by Claymore Securities, Inc. or its
parent or affiliates (�Claymore�). Claymore has not passed on the
legality or suitability of, or the accuracy or adequacy of
descriptions and disclosures relating to, the securities. Claymore
makes no representation or warranty, express or implied, to any
member of the public regarding the advisability of investment in
securities generally or in the securities particularly. Claymore
makes no warranty, express or implied, as to the results to be
obtained by owners of securities. This is not an offer to sell or a
solicitation of an offer to buy the securities. Member NASD/SIPC
04/07 NOT FDIC-INSURED -- NOT BANK-GUARANTEED -- MAY LOSE VALUE
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