Morgan Stanley to price three-month RevCons linked to Foster Wheeler

By E. Janene Geiss

Philadelphia, Nov. 27 - Morgan Stanley plans to price an offering of reverse convertible securities (RevCons) due March 12, 2008 linked to the common stock of Foster Wheeler Ltd., according to an FWP filing with the Securities and Exchange Commission.

The three-month notes are expected to have an annualized rate of 29.5% to 31.5% with the exact coupon determined at pricing. Interest will be payable monthly.

The payout at maturity will be par unless Foster Wheeler stock closes below the trigger price - 80% of the initial share price - during the life of the notes and closes below the initial share price on the final determination date, in which case the payout will be a number of Foster Wheeler shares equal to $1,000 divided by the initial share price or, at Morgan Stanley's option, the equivalent cash value.

The notes will price on Dec. 7 and settle on Dec. 12.

Morgan Stanley & Co. Inc. will be the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.