New Issue: Morgan Stanley prices $38,000 14% RevCons linked to Goodyear

By Jennifer Chiou

New York, June 28 - Morgan Stanley priced $38,000 of 14% annualized reverse convertible securities due Sept. 29, 2011 linked to the common stock of Goodyear Tire & Rubber Corp., according to an FWP with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Goodyear stock falls by 20% or more during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Goodyear shares equal to par divided by the initial share price or, at the issuer's option, the value of those shares in cash.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Reverse convertible securities
Underlying stock:	Goodyear Tire & Rubber Corp. (Symbol: GT)
Amount:	$38,000
Maturity:	Sept. 29, 2011
Coupon:	14%, payable monthly
Price:	Par
Payout at maturity:	Par unless Goodyear stock falls below trigger price during life of notes and finishes below initial share price, in which case 62.97229 Goodyear shares or equivalent amount in cash
Initial share price:	$15.88
Trigger price:	$12.704, 80% of initial price
Pricing date:	June 24
Settlement date:	June 29
Agent:	Morgan Stanley & Co. LLC
Fees:	1.75%
Cusip:	617482US1

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