Morgan Stanley plans three-month 12% reverse convertibles on AK Steel

By Toni Weeks

San Diego, March 30 - Morgan Stanley plans to price 12% reverse convertible securities due July 28, 2011 linked to the common stock of AK Steel Holding Corp., according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable monthly.

The payout at maturity will be par unless AK Steel stock closes below the trigger price - 80% 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 AK Steel shares equal to $1,000 divided by the initial share price or, at Morgan Stanley's option, the equivalent cash value.

The notes (Cusip: 617482TD6) will price April 25 and settle April 28.

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

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