Morgan Stanley plans six-month 8%-10% ELKS linked to Cummins shares

By Toni Weeks

San Diego, May 25 - Morgan Stanley plans to price 8% to 10% annualized Equity LinKed Securities due Dec. 23, 2011 linked to the common stock of Cummins Inc., according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable monthly. The exact rate will be set at pricing.

The payout at maturity will be par of $10 unless Cummins shares fall to or below 80% of the initial price during the life of the notes, in which case the payout will be a number of shares of Cummins stock equal to $10 divided by the initial price or, at the issuer's option, a cash amount equal to the value of those shares.

The notes (Cusip: 61760E325) are expected to price June 24 and settle June 29.

Morgan Stanley & Co. Inc. is the agent.

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