By Angela McDaniels
Tacoma, Wash., Oct. 13 - Deutsche Bank AG, London Branch priced $895,000 principal amount of additional tracker notes due Aug. 14, 2014 linked to the iShares Barclays TIPS bond fund, the SPDR DB International Government Inflation-Protected bond exchange-traded fund and the Deutsche Bank Equity Mean Reversion Alpha index (Emerald), according to a 424B2 filing with the Securities and Exchange Commission.
The company priced $11.62 million of the notes at par on Aug. 10. The total issue size is now $12.51 million.
The additional notes priced at 112.14% of par, generating $1 million of proceeds.
On each dividend pass-thru payment date, investors will receive a cash payment per $1,000 principal amount of notes that equals the total amount of dividends accrued and paid by the two funds to their shareholders during the applicable payment period on the number of shares of the applicable fund equal to its dividend passthru share amount.
For the Barclays fund, the dividend passthru share amount is $800 divided by its initial share price. For the SPDR fund, it is $200 divided by its initial share price.
The initial basket level is 100. On any trading day, the basket level will be 100 plus 80% of the Barclays fund's return plus 20% of the SPDR fund's return plus 300% of the index's return. The level of each underying is reduced by an adjustment factor, which is a flat 0.25% for each of the funds and 1% per year for the index.
The notes will be called if the basket level falls to or below 40.
The payout at maturity or upon redemption will be $1,000 multiplied by the quotient of the final basket level divided by the initial basket level.
Deutsche Bank Securities Inc. is the underwriter.
| Issuer: | Deutsche Bank AG, London Branch
|
| Issue: | Tracker notes
|
| Underlying basket: | iShares Barclays TIPS bond fund, SPDR DB International Government Inflation-Protected bond exchange-traded fund, Deutsche Bank Equity Mean Reversion Alpha index
|
| Amount: | $12.51 million, increased from $11,615,000
|
| Maturity: | Aug. 14, 2014
|
| Coupon: | Quarterly payments equal to the dividends paid during the period on a number of Barclays fund shares equal to $800 divided by its initial share price plus a number of SPDR fund shares equal to $200 divided by its initial share price
|
| Price: | Par for original $11,615,000; 112.14 for $895,000 add-on
|
| Payout at maturity: | Par multiplied by quotient of final basket level divided by initial basket level
|
| Basket level: | 100 plus 80% of Barclays fund's return plus 20% of SPDR fund's return plus 300% of index's return; levels reduced by adjustment factor of 0.25% for each fund and 1% per year for index
|
| Initial levels: | $116.4275 for TIPS fund; $61.7525 for SPDR fund; 195.13 for index
|
| Final levels: | For index, its closing level on Aug. 11, 2014; for each fund, average of its closing levels on the four trading days ending Aug. 11, 2014
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| Pricing dates: | Aug. 10 for original issue; Oct. 11 for add-on
|
| Settlement dates: | Aug. 15 for original issue; Oct. 14 for add-on
|
| Underwriter: | Deutsche Bank Securities Inc.
|
| Fees: | 0.25% for original issue; none for add-on
|
| Cusip: | 2515A1C33
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