By Angela McDaniels
Seattle, Jan. 18 - Morgan Stanley & Co. priced $10 million 0% notes due Jan. 23, 2011 linked to five Asian indexes, according to a 424B3 filing with the Securities and Exchange Commission.
The underlying indexes are the Nikkei 225 index with a 30% weight, the MSCI China Index with a 20% weight, the Kospi 200 index with a 20% weight, the MSCI Taiwan index with a 20% weight and the Hang Seng index with a 10% weight.
If the return is positive at maturity, investors will receive par plus the percentage by which the basket value increased, multiplied by the participation rate, 132%.
If the return is negative and the basket level never drops below 75% of its initial level during the life of notes, then the payout will be par.
If the return is negative and the basket level does drop below 75% of its initial level during the life of notes, then investors will participate fully in any loss.
The return on the basket of indexes will be the average of its closing values measured once a month during the six months before maturity.
| Issuer: | Morgan Stanley & Co. Inc.
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| Issue: | Performance Enhanced Index-Linked Securities senior medium-term series F notes
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| Underlying indexes: | Nikkei 225 index (30% weight), MSCI China index (20% weight), Kospi 200 index (20% weight), MSCI Taiwan index (20% weight), Hang Seng index (10% weight)
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| Amount: | $10 million
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| Maturity: | Jan. 23, 2011
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If index return is positive, par plus 132% of return on basket; if return is negative and basket level never drops below 75% of initial level during life of notes, par; if return is negative and basket level does drop below 75% of initial level during life of notes, then par less loss on basket
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| Pricing date: | Jan. 18
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| Settlement date: | Jan. 23
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| Underwriter: | Morgan Stanley
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