New Issue: Morgan Stanley prices $850,000 9% RevCons linked to Nike

By Angela McDaniels

Tacoma, Wash., Feb. 11 - Morgan Stanley priced $850,000 of reverse convertible securities (RevCons) due May 13, 2008 linked to Nike, Inc. common stock, according to an FWP filing with the Securities and Exchange Commission.

The three-month notes will pay 2.25% for an annualized rate of 9%. Interest is payable monthly.

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

Morgan Stanley & Co. Inc. is the agent.

Issuer:	Morgan Stanley
Issue:	Reverse convertible securities
Underlying stock:	Nike, Inc. (Symbol: NKE)
Amount:	$850,000
Maturity:	May 13, 2008
Coupon:	9%, payable monthly
Price:	Par
Payout at maturity:	If Nike stock closes below the trigger level during the life of the notes and finishes below the initial share price, 16.49077 Nike shares or equivalent cash value; otherwise, par
Initial price:	$60.64
Trigger price:	$48.512, 80% of initial price
Pricing date:	Feb. 8
Settlement date:	Feb. 13
Agent:	Morgan Stanley & Co. Inc.
Fees:	0.75%

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