New Issue: Morgan Stanley prices $3.2 million 9% RevCons linked to Noble Energy

By Jennifer Chiou

New York, Oct. 16 - Morgan Stanley priced a $3.2 million issue of 9% reverse convertible securities (RevCons) due April 17, 2008 linked to the common stock of Noble Energy, Inc., according to an FWP filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless the stock falls below the trigger price of $60.68, or 80% of the initial share price, during the life of the notes and finishes below its initial share price, in which case the payout will be a number of Noble Energy shares equal to $1,000 divided by the initial share price or, at Morgan Stanley's option, the equivalent cash value.

Morgan Stanley & Co. Inc. is the agent.

Issuer:	Morgan Stanley
Issue:	Reverse convertible securities (RevCons)
Underlying stock:	Noble Energy, Inc. (Symbol: NBL)
Amount:	$3.2 million
Maturity:	April 17, 2008
Coupon:	9%, payable monthly
Price:	Par
Payout at maturity:	If the stock falls below the trigger price during the life of the notes and finishes below the initial share price, 13.18392 Noble Energy shares or the equivalent cash value; otherwise, par
Initial share price:	$75.85
Trigger price:	$60.68, 80% of initial share price
Pricing date:	Oct. 12
Settlement date:	Oct. 17
Agent:	Morgan Stanley & Co. Inc.
Fees:	1.5%

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