Morgan Stanley to price three-month RevCons linked to Goldman Sachs

By E. Janene Geiss

Philadelphia, Nov. 14 - Morgan Stanley plans to price an offering of reverse convertible securities (RevCons) due Feb. 28, 2008 linked to the common stock of the Goldman Sachs Group, Inc., according to an FWP filing with the Securities and Exchange Commission.

The three-month notes are expected to have an annualized rate of 18.25% to 20.25% with the exact coupon determined at pricing. Interest will be payable monthly.

The payout at maturity will be par unless Goldman Sachs 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 Goldman Sachs 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 Nov. 23 and settle on Nov. 28.

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

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