New Issue: Morgan Stanley prices $13.8 million 15.5% RevCons linked to Goldman Sachs

By Susanna Moon

Chicago, Aug. 25 - Morgan Stanley priced $13.8 million of 15.5% annualized reverse convertible securities due Feb. 27, 2009 linked to the common stock of Goldman Sachs Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

Payout at maturity will be par unless the stock falls by more than 25% during the life of the notes and finishes below the initial share price, 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.

Morgan Stanley & Co. Inc. is the agent.

Issuer:	Morgan Stanley
Issue:	Reverse convertible securities
Underlying stock:	Goldman Sachs Group, Inc. (Symbol: GS)
Amount:	$13,795,000
Maturity:	Feb. 27, 2009
Coupon:	15.5%, payable monthly
Price:	Par
Payout at maturity:	If the stock falls below the trigger price during the life of the notes and finishes below the initial share price, 6.25743 Goldman Sachs shares; otherwise, par
Initial share price:	$159.81
Trigger price:	$119.8575, 75% of initial share price
Pricing date:	Aug. 22
Settlement date:	Aug. 27
Agent:	Morgan Stanley & Co. Inc.
Fees:	1.5%

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