By Angela McDaniels
Seattle, Oct. 27 - Morgan Stanley priced a $8 million issue of 0% notes due May 1, 2008 in the Bear Market PLUS (Performance Leveraged Upside Securities) structure linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.
If the ending index level is less than the initial index level, the payout at maturity will be par plus triple the absolute value of the negative return on the index. The payout will be capped at $1,871.50 per $1,000 principal amount of notes.
If the index shows a positive return of 108% or less, the payout will be par.
If the index shows a positive return greater than 108%, the payout will be 1% for each 1% gain beyond 108%.
| Issuer: | Morgan Stanley
|
| Issue: | Bear Market PLUS (Performance Leveraged Upside Securities) senior medium-term notes, series F
|
| Underlying index: | S&P 500
|
| Amount: | $8 million
|
| Maturity: | May 1, 2008
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus triple the absolute value of any negative return on the index, capped at $1,871.50 per $1,000 principal amount of notes; par if index increases by 8% or less; investors will lose 1% for each 1% gain on the index beyond 8%
|
| Initial index value: | 1,385.83
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 31
|
| Agent: | Morgan Stanley & Co. Inc.
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| Agent fees: | 150 basis points
|
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