Morgan Stanley to price 24%-30% RevCons linked to Goldman Sachs

By Angela McDaniels

Tacoma, Wash., March 11 - Morgan Stanley plans to price reverse convertible securities due Sept. 28, 2009 linked to the common stock of Goldman Sachs Group, Inc., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will pay an annualized coupon of 24% to 30%, with the exact coupon to be set at pricing. Interest will be payable monthly.

The payout at maturity will be par unless Goldman Sachs stock falls below the trigger price - 50% of the initial share price - during the life of the notes and the final share price is less than the initial 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 value of those shares in cash.

The notes are expected to price March 24 and settle March 27.

Morgan Stanley & Co. Inc. is the agent.

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