Morgan Stanley to price 14%-18% RevCons linked to Target on April 23

By E. Janene Geiss

Philadelphia, April 14 - Morgan Stanley plans to price reverse convertible securities due Oct. 28, 2009 linked to the common stock of Target Corp., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will pay an annualized coupon of 14% to 18%, with the exact coupon to be set at pricing. Interest will be payable monthly.

The payout at maturity will be par unless the stock falls below the trigger price - 75% of the initial share price - during the life of the notes and the final share price is less than the initial price, in which case the payout will be a number of Target shares equal to $1,000 divided by the initial share price or, at Morgan Stanley's option, the value of those shares in cash.

The notes are expected to price April 23 and settle April 28.

Morgan Stanley & Co. Inc. is the agent.

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