By Angela McDaniels
Seattle, Oct. 25 - Morgan Stanley priced a $14.1 million issue of 0% notes due Jan. 20, 2008 in the Bear Market Performance Leveraged Upside Securities (PLUS) structure linked to a basket of indexes, according to an FWP filing with the Securities and Exchange Commission.
The basket includes the S&P 500 index with a 50% weight, the Russell 2000 index with a 25% weight and the MSCI EAFE index with a 25% weight.
If the ending basket level is less than the initial basket level, the payout at maturity will be par of $10.00 plus four times the absolute value of the negative return on the basket. The payout will be capped at $15.20 per $10.00 note.
If the ending basket level is greater than the initial basket level, the payout will be par minus 1% for each 1% gain on the basket, up to a maximum loss of 50%.
| Issuer: | Morgan Stanley
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| Issue: | Bear Market Performance Leveraged Upside Securities (PLUS) senior medium-term series F notes
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| Underlying indexes: | S&P 500 (50% weight), Russell 2000 (25% weight), MSCI EAFE (25% weight)
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| Amount: | $14.1 million
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| Maturity: | Jan. 20, 2008
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| Coupon: | 0%
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| Price: | Par of $10.00
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| Payout at maturity: | Par plus four times the absolute value of any negative return on the index, capped at $15.20 per $10.00 note; investors will lose 1% for each 1% gain on the index, up to a maximum loss of 50%
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| Pricing date: | Oct. 24
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| Settlement date: | Oct. 31
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| Agent: | Morgan Stanley & Co. Inc.
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