New Issue: Morgan Stanley prices $9.57 million 14% RevCons linked to Alcoa

By Susanna Moon

Chicago, June 9 - Morgan Stanley priced $9.57 million of 14% reverse convertible securities (RevCons) due Dec. 11, 2008 linked to the common stock of Alcoa Inc., according to an FWP filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Alcoa stock closes below the trigger price - 75% of the initial share price - during the life of the notes and closes below the initial share price on the final determination date, in which case the payout will be a number of Alcoa 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
Underlying stock:	Alcoa Inc. (Symbol: AA)
Amount:	$9,569,000
Maturity:	Dec. 11, 2008
Coupon:	14%, 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, 25.4972 Alcoa shares; otherwise, par
Initial share price:	$39.22
Trigger price:	$29.415, or 75% of initial share price
Pricing date:	June 6
Settlement date:	June 11
Agent:	Morgan Stanley & Co. Inc.
Fees:	1.5%

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