By E. Janene Geiss
Philadelphia, May 15 - Morgan Stanley priced a $10.1 million issue of 9.7% reverse convertible securities (RevCons) due May 16, 2008 linked to the common stock of Norfolk Southern Corp., according to an FWP filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless Norfolk Southern stock hits the trigger price of $44.174 during the life of the notes and finishes below the initial share price of $55.22, in which case the payout will be a number of Norfolk Southern shares equal to $1,000 divided by the initial share priced or, at Morgan Stanley's option, the equivalent cash value.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Reverse convertible securities (RevCons)
|
| Underlying stock: | Norfolk Southern Corp.
|
| Amount: | $10.1 million
|
| Maturity: | May 16, 2008
|
| Coupon: | 9.7%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If Norfolk Southern stock hits the trigger price of $44.174 during the life of the notes and finishes below the initial share price, 18.10938 Norfolk Southern shares or equivalent cash value; otherwise par
|
| Initial share price: | $55.22
|
| Trigger price: | $44.174, 80% of initial share price
|
| Pricing date: | May 11
|
| Settlement date: | May 16
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Commission: | 2.75%
|
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