By Marisa Wong
Morgantown, W.Va., Nov. 20 – Morgan Stanley sold $394,960 of 0% Market Vectors – Indian Rupee /USD exchange-traded notes due March 31, 2020 linked to the S&P Indian Rupee Total Return index, according to a 424B2 filing with the Securities and Exchange Commission.
The $394,960 principal amount of notes have an aggregate market price of $407,894.94, based on $41.31 per note, which is the average of the high and low prices reported on NYSE Arca on Nov. 10.
The company registered to sell up to $105 million of the notes in March 2008, as previously reported. The issuer has priced an aggregate principal amount of $13 million.
In an announcement on June 30, 2015, the issuer said it does not intend to issue any additional ETNs. However, the issuer may continue to sell any notes it currently holds or will acquire in the future.
As of Nov. 16, $394,960 principal amount was held for sale by the agent, Morgan Stanley & Co. LLC.
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
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Issue: | Market Vectors – Indian Rupee/USD exchange-traded notes
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Underlying index: | S&P Indian Rupee Total Return
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Amount: | $13 million
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Maturity: | March 31, 2020
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Coupon: | 0%
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Price: | Variable
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Payout at maturity: | Par plus the index return minus the investor fee
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Put: | At par plus the index return minus the investor fee
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Pricing date: | March 14, 2008 for initial $4 million
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Settlement date: | March 20, 2008 for initial $4 million
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Agent: | Morgan Stanley & Co. Inc.
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Fees: | None
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Listing: | NYSE Arca: INR
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Cusip: | 61747W265
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