Morgan Stanley to price 0% buffered PLUS notes linked to natural gas

By E. Janene Geiss

Philadelphia, May 23 - Morgan Stanley plans to price an offering of 0% Buffered Performance Leveraged Upside Securities (PLUS) due June 30, 2010 linked to the price of natural gas, according to a 424B filing with the Securities and Exchange Commission.

The securities will price and settle in June.

The payout at maturity will be par of $10 plus triple the value of any gain on the price of natural gas, subject to a maximum payout that is expected to be between 150% and 155% of par. The exact cap will be set at pricing.

The payout will be par if the index declines by 15% or less. Investors will lose 1% for every 1% decline in the index beyond 15%, but will receive at least $150.00

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

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