Morgan Stanley to price 7.5% Sparqs exchangeable for Coach

By Angela McDaniels

Seattle, Nov. 22 - Morgan Stanley plans to price an issue of 7.5% Stock Participation Accreting Redemption Quarterly-pay Securities (Sparqs) due Jan. 20, 2008 mandatorily exchangeable for Coach, Inc. stock, according to an FWP filing with the Securities and Exchange Commission.

The notes will price at the closing price of one share of Coach common stock on the pricing date, which will be in December.

Interest will be payable quarterly.

At maturity, investors will receive one share of Coach stock per Sparqs.

The Sparqs will be callable beginning July 20, 2007. The yield to call will be set at pricing and is expected to be between 16% and 20%.

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

Morgan Stanley will be the agent for the offering and will receive a fee of 1.625%.

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