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Published on 7/18/2006 in the Prospect News Convertibles Daily.

New Issue: Morgan Stanley prices $5 million 0% capital-protected notes linked to Nikkei

By Jennifer Chiou

New York, July 18 - Morgan Stanley priced $5 million of 0% global medium-term series F capital-protected notes due July 24, 2009 linked to the Nikkei 225 index, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par plus any positive return on the index multiplied by a participation rate of 107%. Investors will receive at least par.

Issuer:Morgan Stanley
Issue:Capital-protected notes
Underlying index:Nikkei 225
Amount:$5 million
Maturity:July 24, 2009
Coupon:0%
Price:Par
Payout at maturity:Par plus 107% of any positive return on the index; floor of par
Pricing date:July 17
Settlement date:July 24
Agent:Morgan Stanley & Co. Inc.

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