By E. Janene Geiss
Philadelphia, May 15 - Morgan Stanley priced a $13.75 million issue of 11.05% reverse convertible securities (RevCons) due May 16, 2008 linked to the common stock of Freeport-McMoRan Copper & Gold, Inc., according to an FWP filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless Freeport-McMoRan stock hits the trigger price of $54.69 during the life of the notes and finishes below the initial share price of $72.92, in which case the payout will be a number of Freeport-McMoRan 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: | Freeport-McMoRan Copper & Gold, Inc.
|
| Amount: | $13.75 million
|
| Maturity: | May 16, 2008
|
| Coupon: | 11.05%, payable monthly.
|
| Price: | Par
|
| Payout at maturity: | If Freeport-McMoRan stock hits the trigger price of $54.69 during the life of the notes and finishes below the initial share price, 13.71366 Freeport-McMoRan shares or equivalent cash value; otherwise par
|
| Initial share price: | $72.92
|
| Trigger price: | $54.69, 75% of initial share price
|
| Pricing date: | May 11
|
| Settlement date: | May 16
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Commission: | 2.75%
|
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