New Issue: Morgan Stanley prices $392,000 12% RevCons linked to Freeport-McMoRan

By Angela McDaniels

Tacoma, Wash., May 26 - Morgan Stanley priced $392,000 of 12% annualized reverse convertible securities due Nov. 29, 2011 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 falls by 20% or more during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Freeport-McMoRan shares equal to par divided by the initial share price or, at the issuer's option, the value of those shares in cash.

Morgan Stanley & Co. Inc. is the agent.

Issuer:	Morgan Stanley
Issue:	Reverse convertible securities
Underlying stock:	Freeport-McMoRan Copper & Gold Inc. (Symbol: FCX)
Amount:	$392,000
Maturity:	Nov. 29, 2011
Coupon:	12%, payable monthly
Price:	Par
Payout at maturity:	Par unless Freeport-McMoRan stock falls below trigger price during life of notes and finishes below initial share price, in which case 20.48341 Freeport-McMoRan shares or equivalent amount in cash
Initial share price:	$48.82
Trigger price:	$39.056, 80% of initial price
Pricing date:	May 24
Settlement date:	May 27
Agent:	Morgan Stanley & Co. Inc.
Fees:	2%
Cusip:	617482UA0

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