New Issue: Morgan Stanley sells $4.65 million 21% RevCons tied to metals, mining ETF for Eksportfinans

By Angela McDaniels

Tacoma, Wash., July 13 - Eksportfinans ASA priced $4.65 million of reverse convertible notes due Jan. 15, 2010 linked to the SPDR S&P Metals and Mining exchange-traded fund via underwriter Morgan Stanley & Co. Inc., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes pay 10.5% for an annualized coupon of 21%. Interest is payable monthly.

The payout at maturity will be par unless shares of the ETF fall to or below the knock-in level - 75% of the initial share price - during the life of the notes and finish below the initial share price, in which case the payout will be a number of ETF shares equal to $1,000 divided by the initial share price or, at the issuer's option, the value of those shares in cash.

Issuer:	Eksportfinans ASA
Issue:	Reverse convertible notes
Underlying ETF:	SPDR S&P Metals and Mining exchange-traded fund
Amount:	$4,649,000
Maturity:	Jan. 15, 2010
Coupon:	21%, payable monthly
Price:	Par
Payout at maturity:	If ETF shares fall to or below knock-in level during life of notes and finish below initial price, 29.94909 ETF shares or, at Eksportfinans' option, the value of those shares in cash; otherwise, par
Initial share price:	$33.39
Knock-in level:	$25.0425, 75% of initial price
Pricing date:	July 10
Settlement date:	July 15
Underwriter:	Morgan Stanley & Co. Inc.
Fees:	1.5%

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