By Marisa Wong
Madison, Wis., Dec. 23 - Morgan Stanley sold $8.12 million of 0% Market Vectors - Indian Rupee /USD exchange-traded notes due March 31, 2020 linked to the S&P Indian Rupee Total Return index as of Dec. 23, according to a 424B2 filing with the Securities and Exchange Commission.
The company registered to sell up to $105 million of the notes on March 17, 2008. The initial $4 million of notes priced at par of $40 on March 14, 2008, and the remainder of the notes will be sold from time to time at the prevailing market price or at negotiated prices.
The index was designed to be an investable alternative to the spot exchange rate between the dollar and the Indian rupee and tracks the value of rolling three-month non-deliverable currency forward contracts.
Holders may put the notes back to the company beginning March 27. There is a minimum repurchase requirement of 50,000 notes.
Upon redemption or at maturity, the payout will be par plus the index return minus the investor fee.
The investor fee will initially equal zero. Each day, the investor fee will increase by an amount equal to 0.55% of par multiplied by the index factor - which equals the index's closing level on that day divided by the initial index level - divided by 365.
The notes were approved for listing on the NYSE Arca, Inc. under the symbol "INR."
Morgan Stanley & Co. Inc. is the agent. Investment manager Van Eck Global is the exclusive marketer.
| Issuer: | Morgan Stanley
|
| Issue: | Market Vectors - Indian Rupee/USD exchange-traded notes
|
| Underlying index: | S&P Indian Rupee Total Return
|
| Amount: | $8.12 million
|
| Maturity: | March 31, 2020
|
| Coupon: | 0%
|
| Price: | Variable
|
| Payout at maturity: | Par plus the index return minus the investor fee
|
| Put: | At par plus the index return minus the investor fee
|
| Pricing date: | March 14, 2008 for initial $4 million; Dec. 23 for latest add-on
|
| Settlement date: | March 20, 2008 for initial $4 million
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | None
|
| Listing: | NYSE Arca: INR
|
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