Deutsche Bank wraps tenders for $673.31 million of 4.25% senior notes

By Marisa Wong

Morgantown, W.Va., May 17 – Deutsche Bank AG said investors tendered a total of $673,305,000 of its $4.5 billion outstanding 4.25% senior notes due 2021 as of 11:59 p.m. ET on May 16, the expiration of its previously announced tender offer to purchase up to $1 billion of the notes for cash. All of the tendered notes were accepted for purchase, according to a Wednesday press release.

Investors had also tendered a total of $3,644,873,000 of the 4.25% senior notes due 2021 for exchange as of 11:59 p.m. ET on May 16, the expiration of Deutsche Bank’s previously announced exchange offer. These tendered notes were accepted for exchange into a like amount of 4.25% eligible liabilities senior notes due 2021 that are registered under the Securities Act of 1933.

The tender offer and exchange offer were both launched on April 19.

As of 5 p.m. ET on May 2, the early tender date of the tender offer, investors had tendered $672,605,000 of the original 4.25% notes. Settlement of the early tendered notes occurred on May 4, as previously announced.

The total purchase price was $1,035.82 for each $1,000 principal amount of notes tendered by the early date. The total amount included an early tender premium of $30 per $1,000 principal amount of notes.

Holders who tendered after the early deadline will receive the late purchase price of $1,005.82 per $1,000 of notes, with settlement on May 18.

Pricing was 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 reference yield of 1.825%.

The company also paid and will pay accrued interest to but excluding the applicable settlement date.

The exchange offer and tender offer were made independently of each other, and each offer was not contingent on completion of the other, according to a previous announcement.

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.

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

Settlement of the exchange offer is expected to occur on May 18.

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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