Morgan Stanley plans autocallable 10.5% RevCons on Bank of America

By Susanna Moon

Chicago, Feb. 4 - Morgan Stanley plans to price 10.5% autocallable reverse convertible securities due Feb. 28, 2012 based on the performance of Bank of America Corp. shares, according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable monthly.

The notes will be called at par if the stock closes at or above its initial share price on any of the four observations dates, which will be in May, August, November 2011 and February 2012.

The payout at maturity will be par unless Bank of America stock falls by 25% or more during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Bank of America shares equal to par divided by the initial share price or, at the issuer's option, the value of those shares in cash.

The notes (Cusip 617482RG1) will price on Feb. 22 and settle on Feb. 25.

Morgan Stanley & Co. Inc. is the agent.

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