By Susanna Moon
Chicago, Aug. 13 - Morgan Stanley priced a $4.6 million issue of 11% reverse convertible securities (RevCons) due Feb. 15, 2008 linked to the common stock of Valero Energy Corp., according to an FWP filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless the stock falls below the trigger price of $55.12, or 80% of the initial share price, during the life of the notes and finishes below its initial share price, in which case the payout will be a number of Valero Energy 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
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Issue: | Reverse convertible securities (RevCons)
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Underlying stock: | Valero Energy Corp. (NYSE: VLO)
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Amount: | $4.6 million
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Maturity: | Feb. 15, 2008
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Coupon: | 11%, payable monthly
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Price: | Par
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Payout at maturity: | If the stock falls below the trigger price during the life of the notes and finishes below the initial share price, 14.51379Valero Energy shares or the equivalent cash value; otherwise, par
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Initial share price: | $68.90
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Trigger price: | $55.12, 80% of initial share price
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Pricing date: | Aug. 10
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Settlement date: | Aug. 15
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Agent: | Morgan Stanley & Co. Inc.
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Fees: | 1.5%
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