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Published on 3/27/2006 in the Prospect News Convertibles Daily.

Morgan Stanley plans 0% notes linked to basket of three indexes

By Jennifer Chiou

New York, March 27 - Morgan Stanley is planning to price 0% capital-protected global medium-term series F notes due April 20, 2010 linked to a basket of three indexes, according to an FWP filing with the Securities and Exchange Commission.

The underlying indexes are the Dow Jones Euro Stoxx 50, S&P 500 and Nikkei 225 - all with equal weights.

Payout at maturity will be determined according to the performance of the basket on the determination date, April 15, 2010. Investors will receive par plus the percentage gain on the basket. Investors will receive at least par at maturity.

Morgan Stanley said it will apply to list the notes on the American Stock Exchange as "MIBII."

Morgan Stanley will be the underwriter.


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