Morgan Stanley to price 10%-12% RevCons linked to Devon Energy

By Susanna Moon

Chicago, April 25 - Morgan Stanley plans to price reverse convertible securities (RevCons) due Nov. 14, 2008 linked to the common stock of Devon Energy Corp., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes are expected to have an annualized rate of 10% to 12%, with the exact coupon to be set at pricing. Interest will be payable monthly.

The payout at maturity will be par unless Devon Energy stock closes below the trigger price - 80% of the initial share price - during the life of the notes and closes below the initial share price on the final determination date, in which case the payout will be a number of Devon Energy shares equal to $1,000 divided by the initial share price or, at Morgan Stanley's option, the equivalent cash value.

The notes will price on May 9 and settle on May 14.

Morgan Stanley & Co. Inc. will be the agent.

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