New Issue: Morgan Stanley prices $13.3 million 10% reverse convertibles linked to AT&T for Eksportfinans

By E. Janene Geiss

Philadelphia, Dec. 27 - Eksportfinans ASA priced $13.3 million of reverse convertible notes due June 27, 2008 linked to AT&T Corp. common stock via Morgan Stanley & Co. Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 5% for an annualized rate of 10%. Interest is payable monthly.

The payout at maturity will be par unless the stock falls by more than 20% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of AT&T shares equal to $1,000 divided by the initial share price or, at the issuer's option, the equivalent cash value.

Issuer:	Eksportfinans ASA
Issue:	Reverse convertible notes
Underlying stock:	AT&T Corp. (Symbol: T)
Amount:	$13.3 million
Maturity:	June 27, 2008
Coupon:	10%, payable monthly
Price:	Par
Payout at maturity:	If the stock falls below the trigger price during the life of the notes and finishes below the initial share price, 24.108 shares or the equivalent cash value; otherwise, par
Initial share price:	$41.48
Trigger price:	$33.184, or 80% of initial share price
Pricing date:	Dec. 21
Settlement date:	Dec. 27
Underwriter:	Morgan Stanley & Co. Inc.
Fees:	1.5%

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