By Marisa Wong
Morgantown, W.Va., Dec. 3 – Morgan Stanley priced an additional $29.6 million principal amount of 0% Market Vectors-Chinese renminbi/dollar exchange-traded notes due March 31, 2020 based on the performance of the S&P Chinese Renminbi Total Return index, according to a 424B2 filing with the Securities and Exchange Commission.
The issuer previously announced it plans to issue a maximum amount of $200 million principal amount of the notes, increased from the original $50 million of note priced on March 14, 2008. As of Jan. 14, 2011, Morgan Stanley sold about $85 million of the ETNs.
As of Nov. 24, about $15 million of the ETNs were held for sale by the agent. On June 30, 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. The latest issuance includes ETNs issued prior to June 30 and not yet sold to the public.
The index is intended to be an investable alternative to the spot exchange rate between the dollar and the Chinese renminbi and tracks the value of rolling three-month non-deliverable currency forward contracts.
The payout at maturity will be par of $40 multiplied by the index return, less an investor fee of 0.55% times the proportion of days elapsed.
Investors will share in any losses.
The notes are listed on NYSE Arca, Inc. under the symbol, “CNY.”
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Market Vectors-Chinese renminbi/dollar ETNs
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| Underlying index: | S&P Chinese Renminbi Total Return Index
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| Amount: | Up to $200 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 less an investor fee of 0.55% times the proportion of days elapsed
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| Initial share price: | $40.00
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| Pricing date: | March 14, 2008 for initial $50 million; Nov. 25 for latest $29.6 million
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| Settlement date: | March 20, 2008 for initial ETNs
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| Agent: | Morgan Stanley & Co. Inc.
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| Fees: | 0%
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| Listing: | NYSE Arca: CNY
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| Cusip: | 61747W257
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