Morgan Stanley plans contingent income autocallables linked to S&P GSCI Brent Crude index

By Angela McDaniels

Tacoma, Wash., Jan. 10 - Morgan Stanley plans to price contingent income autocallable securities due January 2012 linked to the S&P GSCI Brent Crude Index - Excess Return, according to a 424B2 filing with the Securities and Exchange Commission.

Interest, if any, will be payable quarterly. If the index closes at or above the downside threshold level - 90% of the initial level - on a determination date, investors will receive a 2.5% contingent payment. Otherwise, no contingent payment will be made for that period.

If the index closes at or above the initial level on any of the first three determination dates, the notes will be automatically redeemed at par of $10 plus the contingent payment.

The determination dates will fall in April 2011, July 2011, October 2011 and January 2012.

If the notes are not called and the final index level is greater than the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final index level is less than or equal to the downside threshold level, the payout will be par plus the index return.

The notes (Cusip 617482QP2) will price and settle in January.

Morgan Stanley & Co. Inc. is the agent.

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