New Issue: Morgan Stanley prices $2.25 million 12% RevCons linked to Google

By Angela McDaniels

Tacoma, Wash., Sept. 11 - Morgan Stanley priced $2.25 million of reverse convertible securities due March 12, 2009 linked to the common stock of Google Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 6% for an annualized coupon of 12%. Interest is payable monthly.

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

Morgan Stanley & Co. Inc. is the agent.

Issuer:	Morgan Stanley
Issue:	Reverse convertible securities
Underlying stock:	Google Inc. (Symbol: GOOG)
Amount:	$2,247,000
Maturity:	March 12, 2009
Coupon:	12%, payable monthly
Price:	Par
Payout at maturity:	If Google stock falls below trigger price during life of notes and final share price is less than initial share price, 2.38857 Google shares or equivalent cash value; otherwise, par
Initial share price:	$418.66
Trigger price:	$334.928, 80% of initial share price
Pricing date:	Sept. 9
Settlement date:	Sept. 12
Agent:	Morgan Stanley & Co. Inc.
Fees:	1.5%

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