By Angela McDaniels
Tacoma, Wash., March 26 - Morgan Stanley priced $2.54 million of reverse convertible securities (RevCons) due Sept. 27, 2008 linked to shares of the iShares MSCI Brazil index fund, according to an FWP filing with the Securities and Exchange Commission.
The six-month notes will pay 7.75% for an annualized rate of 15.5%. Interest is payable monthly.
The payout at maturity will be par unless shares of the exchange-traded fund fall by 25% or more during the life of the notes and finish below the initial share price, in which case the payout will be a number of shares of the ETF equal to $1,000 divided by the initial share price or, at Morgan Stanley's option, the equivalent amount in cash.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Reverse convertible securities (RevCons)
|
| Underlying ETF: | iShares MSCI Brazil index fund
|
| Amount: | $2.54 million
|
| Maturity: | Sept. 27, 2008
|
| Coupon: | 15.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If shares of the ETF close at or below the trigger price during the life of the notes and the final share price is less than the initial share price, 13.2503 shares or the equivalent cash value; otherwise, par
|
| Initial share price: | $75.47
|
| Trigger price: | $56.6025, 75% of initial share price
|
| Pricing date: | March 24
|
| Settlement date: | March 27
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 1.5%
|
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