By Angela McDaniels
Tacoma, Wash., Dec. 23 - Morgan Stanley expects to increase the outstanding amount of its 0% Market Vectors - Double Short Euro exchange-traded notes due April 30, 2020 linked to the Double Short Euro index by $11.6 million, according to a 424B2 filing with the Securities and Exchange Commission.
The issuer has registered to sell $130 million of the notes. As of Dec. 23, $11.6 million principal amount was held for sale by the agent, Morgan Stanley & Co. LLC. The issuer expects the agent to offer and sell these notes to other dealers and investors from time to time.
The payout at maturity will be par of $40 plus the index return minus an investor fee of 0.65% per year.
The notes are putable at any time, subject to a minimum of 50,000 notes, and they will be called if the closing indicative value of the notes falls to $1 or less.
The notes are listed on NYSE Arca under the symbol "DRR."
The index is intended to be an investable alternative to a two-times leveraged, short investment in the value of the euro relative to the dollar. For every 1% weakening of the euro relative to the dollar, the index level will increase by 2%, before taking into account the total return factor and the interest rate-related aspect of the forward contracts.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Market Vectors - Double Short Euro exchange-traded notes
|
| Underlying index: | Double Short Euro index
|
| Amount: | Up to $130 million
|
| Maturity: | April 30, 2020
|
| Coupon: | 0%
|
| Price: | Variable
|
| Payout at maturity: | Par of $40 plus index return minus investor fee of 0.65% per year
|
| Put option: | At any time subject to minimum of 50,000 notes
|
| Call: | If closing indicative value of notes falls to $1 or less
|
| Inception date: | May 6, 2008
|
| Settlement date: | May 12, 2008 for original issue
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | None
|
| Listing: | NYSE Arca: DRR
|
| Cusip: | 617480280
|
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