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Published on 8/31/2005 in the Prospect News Convertibles Daily.

New Issue: Morgan Stanley prices $25 million 0% notes linked to four indexes

By Jennifer Chiou

New York, Aug. 31 - Morgan Stanley priced $25 million 0% notes due 2014 linked to a basket of four indexes, according to a 424B3 filing with the Securities and Exchange Commission.

The basket includes the Dow Jones Euro Stoxx 50 index with a 35% weight, FTSE 100 index with a 29% weight, Topix index with a 25% weight and the Swiss Market index with an 11% weight.

At maturity, investors will receive at least par or par plus an amount based on the gain of the basket, if any, calculated using the average of 13 determination dates, times a 198% participation rate.

Issuer:Morgan Stanley
Issue:Capital protected medium-term notes, series F
Underlying indexes:Dow Jones Euro Stoxx 50 index (weighted 35%), FTSE 100 index (weighted 29%), Topix index (weighted 25%), Swiss Market index (weighted 11%)
Amount:$25 million
Maturity:Sept. 1, 2014
Coupon:0%
Price:Par
Payout at maturity:Par plus amount based on the gain of the basket, if any, calculated using the average of 13 determination dates monthly from Sept. 1, 2013 to Aug. 1, 2014 and Aug. 28, 2014, times a 198% participation rate; otherwise par
Pricing date:Aug. 23
Settlement date:Aug. 30
Underwriter:Morgan Stanley

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