Morgan Stanley to price HITS exchangeable for Wynn Resorts

By Jennifer Chiou

New York, March 27 - Morgan Stanley is planning an issue of HITS (High Income Trigger Securities) due May 20, 2007 exchangeable for Wynn Resorts, Ltd. stock, according to an FWP filing with the Securities and Exchange Commission.

The coupon is talked at 8.5% to 9.5%, and interest will be payable quarterly.

The global medium-term series F notes will be priced at par of $10.00.

Payout at maturity will be determined according to the performance of Wynn Resorts stock up to and including May 17, 2007, the determination date. If the stock price has not decreased below the trigger level, 70% of the initial share price, investors will receive par in cash. If the Wynn Resorts stock has dropped below the trigger price, investors will collect Wynn Resorts shares at an exchange ratio equal to $10.00 divided by the initial share price.

Morgan Stanley said it will apply to list the notes on the American Stock Exchange under the symbol "MWH."

Morgan Stanley will be the agent for the offering.

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