Published on 4/14/2011 in the Prospect News Structured Products Daily.
New Issue: Merrill Lynch prices $23.69 million Stars linked to corn futures for Eksportfinans
By Toni Weeks
San Diego, April 14 - Eksportfinans ASA priced $23.69 million of 0% Strategic Accelerated Redemption Securities due Dec. 2, 2011 linked to the front-month corn futures contract, according to a 424B2 filing with the Securities and Exchange Commission.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the underwriter.
If the price of the futures contract on Nov. 25, 2011 is at or above the initial price, the notes will be called at par of $10 plus a premium of 27%.
Investors will receive par at maturity if the final price of corn futures falls by up to 15% and will be exposed to losses beyond 15%.
Issuer: | Eksportfinans ASA
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Issue: | Strategic Accelerated Redemption Securities
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Underlying: | Front-month corn futures contract
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Amount: | $23,694,180
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Maturity: | Dec. 2, 2011
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par if final price is falls by up to 15%; exposure to losses beyond 15%
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Call: | At par plus 27% on Nov. 25, 2011 if final price of futures contract is at or above initial price
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Initial price: | $752.50
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Threshold value: | $639.63, 85% of initial price
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Pricing date: | April 12
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Settlement date: | April 19
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Underwriter: | Merrill Lynch, Pierce, Fenner & Smith Inc.
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Fees: | 1%
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Cusip: | 28264M632
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