Evergreen Parent to Buy Up Lehman Debt from its Funds
Reported by Erin Kello
Wachovia Corporation is going to flat-out purchase the Lehman Brothers debt held in the Evergreen Money Market Fund, Evergreen Institutional Money Market Fund, and Evergreen Prime Cash Management Fund. Early in September, the firm said it would
support the value of Lehman credit held in the Funds to prevent a decrease in NAV. Wachovia expects the purchase to complete on or about October 1, 2008.
Company Press Release
BOSTON, Sept. 30 /PRNewswire/ -- Evergreen Investments today announced
plans by the firm's parent company, Wachovia Corporation, to purchase the
Lehman debt held in Evergreen Money Market Fund, Evergreen Institutional Money
Market Fund, and Evergreen Prime Cash Management Fund. Evergreen anticipates
the purchase would be complete on or about October 1, 2008. As of September
15, 2008, the Funds had combined total net assets of $29 billion and $494
million in total Lehman credit exposure.
Earlier this month, Wachovia announced that it had entered into support
agreements with Evergreen Money Market Fund, Evergreen Institutional Money
Market Fund, and Evergreen Prime Cash Management Fund in order to support the
value of Lehman credit held in the Funds, and to prevent a decrease in the net
asset value (NAV) of those Funds due to the Lehman debt. Wachovia has now
decided to purchase the Lehman debt holdings out of the Funds.
In addition, Evergreen confirmed that it had submitted the necessary
documentation and paid the required fee to participate in the Money Market
Guarantee Program established by the U.S. Treasury Department. According to
information published by the Treasury, the program will guarantee the share
price of any publicly offered eligible money market mutual fund that applies
for and pays a fee to participate in the program. Money market mutual funds
that are regulated under Rule 2a-7 of the Investment Company Act of 1940, that
maintain a stable share price of $1.00, and that are publicly offered and
registered with the Securities and Exchange Commission are eligible to
participate in the program. The Guarantee Program provides coverage to
shareholders for amounts held in participating money market funds as of the
close of business on September 19, 2008. For more details about the Guarantee
Program, please refer to the information posted on the U.S. Department of
Treasury website (http://treas.gov/press/releases/hp1163.htm ).
About Evergreen Investments
Evergreen Investments is the brand name under which Wachovia Corporation
(NYSE: WB) conducts its investment management business. Wachovia Global Asset
Management is the brand name under which Evergreen Investments conducts sales
and distribution business outside of the United States. Evergreen serves more
than four million individual and institutional investors through a broad range
of investment products. Led by 300 investment professionals, Evergreen
strives to meet client investment objectives through disciplined, team-based
asset management. Evergreen manages more than $245 billion in assets (as of
June 30, 2008). Please visit EvergreenInvestments.com for more information
about Evergreen Investments.
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