By Jennifer Chiou
New York, July 30 - Deutsche Bank AG, London Branch registered to sell up to $500 million of PowerShares DB 3x Short 25+ Treasury Bond exchange-traded notes due May 31, 2040 linked to the DB Short US Treasury Bond Futures index and the DB 3-Month T-Bill index, according to a 424B2 filing with the Securities and Exchange Commission.
At inception on June 28, Deutsche priced $5 million of the notes at par of $25.
The remaining $445 million will be sold from time to time.
The index return at any time is the return of the T-Bill index plus three times the return of the Treasury Bond Futures index. The initial level used to determine the return of each index will be the level of that index on the opening day of the current month.
The notes are putable and callable at any time. The put option is subject to a minimum of 200,000 notes, and investors may be charged a fee of up to $0.03 for each security repurchased.
The payout upon redemption or at maturity will be the repurchase value, which will be the current principal amount plus the index return on the valuation date minus a fee of 0.95% per year.
The principal amount is initially $25. It will be reset each month and will equal the previous current principal amount plus the index return on the monthly valuation date minus the 0.95% annual fee.
If the repurchase value ever falls to zero, the notes will be accelerated and investors will lose their entire investments.
The notes have been approved for listing on the NYSE Arca under the symbol "SBND."
Deutsche Bank Securities Inc. is the underwriter.
| Issuer: | Deutsche Bank AG, London Branch
|
| Issue: | PowerShares DB 3x Short 25+ Treasury Bond exchange-traded notes
|
| Underlying indexes: | DB Short US Treasury Bond Futures index and DB 3-Month T-Bill index
|
| Amount: | $500 million
|
| Maturity: | May 31, 2040
|
| Coupon: | 0%
|
| Price: | Par of $25
|
| Payout at maturity: | Current principal amount plus index return minus fee of 0.95% per year; index return will be T-Bill index return plus three times Treasury Bond Futures index return
|
| Put option: | At any time, subject to minimum of 200,000 notes; payout determined in same manner as at maturity
|
| Call option: | At any time, with payout determined in same manner as at maturity; notes will be automatically called if repurchase value ever hits zero, and payout will be zero
|
| Initial level: | 63.5444
|
| Pricing date: | June 28 ($5 million)
|
| Settlement date: | July 1
|
| Underwriter: | Deutsche Bank Securities Inc.
|
| Fees: | Up to 0.12%
|
| Listing: | NYSE Arca: SBND
|
| Cusip: | 25154N530
|
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