New Issue: Morgan Stanley sells $0.21 million 14.1% RevCons linked to SanDisk

By Jennifer Chiou

New York, March 19 - Morgan Stanley priced $0.21 million of 14.1% reverse convertible securities (RevCons) due March 21, 2008 linked to SanDisk Corp. stock, according to an FWP filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par in cash if SanDisk stock stays at or above the protection price, 80% of the initial share price of $40.57, during the life of the securities and finishes at or above the initial share price. Otherwise, the payout will be in SanDisk stock, with the number of shares equal to $1,000 divided by the initial share price.

Issuer:	Morgan Stanley
Issue:	Reverse convertible securities (RevCons)
Underlying stock:	SanDisk Corp.
Amount:	$0.21 million
Maturity:	March 21, 2008
Coupon:	14.1%, payable monthly
Price:	Par
Payout at maturity:	Par in cash if SanDisk stock stays at or above the protection price of $32.456 and finishes at or above the initial share price; otherwise 24.64876 shares of SanDisk stock
Initial share price:	$40.57
Protection price:	$32.456, 80% of $40.57
Exchange ratio:	24.64876, $1,000 divided by $40.57
Pricing date:	March 16
Settlement date:	March 21
Agent:	Morgan Stanley & Co. Inc.
Agent fees:	2.75%

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