By Susanna Moon
Chicago, July 24 - Morgan Stanley priced a $5.1 million issue of 13.25% reverse convertible securities (RevCons) due Jan. 20, 2008 linked to the common stock of Sotheby's, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless the stock falls by more than 20% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Sotheby's 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: | Sotheby's
|
| Amount: | $5.1 million
|
| Maturity: | Jan. 20, 2008
|
| Coupon: | 13.25%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If the stock falls below the trigger price during the life of the notes and finishes below the initial share price, 19.6657 Sotheby's shares; otherwise, par
|
| Initial share price: | $50.85
|
| Trigger price: | $40.68, 80% of initial share price
|
| Pricing date: | July 20
|
| Settlement date: | July 25
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 1.5%
|
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