New Issue: Morgan Stanley prices $1.95 million 14% RevCons linked to EOG Resources

By E. Janene Geiss

Philadelphia, July 25 - Morgan Stanley priced a $1.95 million issue of 14% annualized reverse convertible securities (RevCons) due Jan. 29, 2009 linked to the common stock of EOG Resources, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless the stock falls by more than 25% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of EOG Resources shares equal to $1,000 divided by the initial share price or, at Morgan Stanley's option, the equivalent cash value.

Morgan Stanley & Co. Inc. is the agent.

Issuer:	Morgan Stanley
Issue:	Reverse convertible securities
Underlying stock:	EOG Resources, Inc. (Symbol: EOG)
Amount:	$1,947,000
Maturity:	Jan. 29, 2009
Coupon:	14%, payable monthly
Price:	Par
Payout at maturity:	If the stock falls below the trigger price during the life of the notes and finishes below the initial share price, 9.88338 EOG Resources shares; otherwise, par
Initial share price:	$101.18
Trigger price:	$75.8850, 75% of initial share price
Pricing date:	July 24
Settlement date:	July 29
Agent:	Morgan Stanley & Co. Inc.
Fees:	1.5%

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