New Issue: Morgan Stanley sells $1.75 million 20.75% RevCons on homebuilders ETF for Eksportfinans

By Angela McDaniels

Tacoma, Wash., May 12 - Eksportfinans ASA priced $1.75 million of reverse convertible notes due Nov. 13, 2009 linked to the SPDR S&P Homebuilders exchange-traded fund via Morgan Stanley & Co. Inc., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes pay 10.375% for an annualized coupon of 20.75%. Interest is payable monthly.

If shares of the ETF fall to or below the knock-in level - 70% of the initial share price - during the life of the notes and the final share price is less than the initial share price, the payout at maturity will be a number of ETF shares equal to $1,000 divided by the initial share price or, at Eksportfinans' option, a cash amount equal to the value of those shares. Otherwise, the payout will be par.

Issuer:	Eksportfinans ASA
Issue:	Reverse convertible notes
Underlying ETF:	SPDR S&P Homebuilders ETF
Amount:	$1,746,000
Maturity:	Nov. 13, 2009
Coupon:	20.75%, 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 share price, 74.23905 ETF shares or equivalent value in cash; otherwise, par
Initial share price:	$13.47
Knock-in level:	$9.429, 70% of initial price
Pricing date:	May 8
Settlement date:	May 13
Underwriter:	Morgan Stanley & Co. Inc.
Fees:	1.5%

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