New issue: Morgan Stanley prices $5.82 million review notes linked to S&P 500

By Marisa Wong

Madison, Wis., Sept. 14 - Morgan Stanley priced $5.82 million of 0% semiannual review notes due Sept. 14, 2012 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically called at par plus a premium of 10.54% per year if the index closes at or above the call level on any of four review dates.

The call level is 90% of the initial level on March 10, 2011 and 100% of the initial level on Sept. 19, 2011, March 12, 2012 and Sept. 11, 2012.

If the notes are not called, the payout at maturity will be par if the final index level is at least 90% of the initial level. Investors will lose 1.1111% for every 1% index decline beyond 10%.

JPMorgan Chase Bank, NA and J.P. Morgan Securities Inc. are the agents.

Issuer:	Morgan Stanley
Issue:	Review notes
Underlying index:	S&P 500
Amount:	$5,818,000
Maturity:	Sept. 14, 2012
Coupon:	0%
Price:	Par
Payout at maturity:	If final index level is at least 90% of initial level, par; otherwise, par minus 1.1111% for every 1% decline below the buffer
Call:	Automatically at par plus annualized call premium of 10.54% if index closes at or above call level on March 10, 2011, Sept. 19, 2011, March 12, 2012 or Sept. 11, 2012; call level is 90% of initial level on first review date and 100% of initial level on second, third and fourth review dates
Initial index level:	1,109.55
Pricing date:	Sept. 10
Settlement date:	Sept. 17
Agents:	JPMorgan Chase Bank, NA and J.P. Morgan Securities Inc.
Fees:	1.5%
Cusip:	617482NK6

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