New Issue: Morgan Stanley prices $9.99 million 11% ELKS linked to Cummins

By Marisa Wong

Madison, Wis., July 2 - Morgan Stanley priced $9.99 million of Equity LinKed Securities due Jan. 3, 2013 linked to the common stock of Cummins Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes carry a coupon of 11.1% per year. Interest is payable monthly.

The payout at maturity will be par of $10 unless the final price of Cummins stock is 75% or less of the initial share price, in which case the payout will be a number of Cummins shares equal to $10 divided by the initial share price or, at Morgan Stanley's option, an amount in cash equal to the value of those shares.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Equity LinKed Securities
Underlying stock:	Cummins Inc. (Symbol: CMI)
Amount:	$9,994,940
Maturity:	Jan. 3, 2013
Coupon:	11.1%, payable monthly
Price:	Par of $10.00
Payout at maturity:	If final price of Cummins stock is less than or equal to downside threshold price, 0.10839 Cummins shares or equivalent value in cash; otherwise, par
Initial share price:	$92.26
Threshold price:	$69.195, 75% of initial price
Pricing date:	June 28
Settlement date:	July 3
Agent:	Morgan Stanley & Co. LLC
Fees:	1.5%
Cusip:	61755S396

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