Deutsche Bank offers to swap out 4.25% notes, tenders for $1 billion

By Susanna Moon

Chicago, April 19 – Deutsche Bank AG is offering to purchase up to $1 billion of its 4.25% senior notes due 2021 and to exchange up to the entire $4.5 billion outstanding amount of the notes.

In the tender, pricing will be set at 10 a.m. ET on May 3 using the 1.875% U.S. Treasury notes due March 31, 2022 plus a fixed spread of 155 basis points for a hypothetical total purchase price of $1,039.08 and a late tender price of $1,009.08, each per $1,000 principal amount.

The total purchase price includes an early tender premium of $30 per $1,000 principal amount of notes tendered by the early deadline of 5 p.m. ET on May 2.

Holders also will receive accrued interest to but excluding the settlement date of May 4 for early tendered notes and May 18 for any remaining tenders.

The hypothetical pricing was set at 10 a.m. ET on April 18, assuming an early settlement date of May 4.

The tender offer will continue until 11:59 p.m. ET on May 16.

Tendered notes may be withdrawn before the early deadline.

In the exchange, the bank is offering to issue an equal principal amount of its 4.25% eligible liabilities senior notes due 2021 that will be registered under the Securities Act of 1933.

The exchange and tender are being made independent of the other, and each offer is not contingent on completion of the other, according to a bank announcement.

In the exchange, notes may only be tendered in denominations of $150,000 and integrals of $1,000 after that.

The exchange notes will have the same coupon and maturity as the original notes; however, the U.S. transfer restrictions on the original notes do not apply to the exchange notes. In addition, the economic provisions of the exchange notes will be substantially similar to those of the original notes, but with some important differences, the release noted.

The exchange offer will end at 11:59 p.m. ET on May 16. Tenders may be withdrawn at any time before that time.

Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955) is the dealer manager. Global Bondholder Services Corp. (212 430-3774, 866 470-4500 or contact@gbsc-usa.com) is the exchange agent and information agent.

Deutsche Bank is a banking and financial services company based in Frankfurt.

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