Morgan Stanley plans Bear Market PLUS notes linked to S&P 500

By Jennifer Chiou

New York, July 25 - Morgan Stanley plans to price an issue of 0% global medium-term series F notes due Sept. 20, 2007 in the Bear Market PLUS (Performance Leveraged Upside Securities) structure linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

At maturity, investors will receive par plus a leverage factor of 400% times the absolute value of any negative return on the index on Sept. 18, 2007. The maximum payout will be between $13.90 and $14.10 per $10.00 note.

If there is an index gain, the percentage increase will be subtracted from par, with a floor of 50%.

Morgan Stanley & Co. Inc. will be the agent.

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