New Issue: Morgan Stanley sells $3.55 million 9% ELKS tied to Southwestern Energy

By Susanna Moon

Chicago, Oct. 29 - Morgan Stanley priced $3.55 million of 9% annualized Equity LinKed Securities due May 9, 2011 based on the performance of Southwestern Energy Co. shares, according to an FWP filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par of $10 unless Southwestern Energy shares close at or below the threshold price - 80% of the initial share price - during the life of the notes, in which case the payout will be a number of Southwestern Energy shares equal to $10 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:	Equity LinKed Securities
Underlying stock:	Southwestern Energy Co. (Symbol: WFC)
Amount:	$3,552,000
Maturity:	May 9, 2011
Coupon:	9% per year, payable monthly
Price:	Par of $10.00
Payout at maturity:	If Southwestern Energy stock closes at or below threshold price of $28.424, 0.28145 Southwestern Energy shares or value in cash; otherwise, par
Initial share price:	$35.53
Downside threshold price:	$28.424, or 80% of initial price
Pricing date:	Nov. 3
Settlement date:	Nov. 8
Agent:	Morgan Stanley & Co. Inc.
Fees:	1.5%
Cusip:	61759G521

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