Deutsche prices $20.56 million commodity securities, $15.1 million PHLX Housing deal

By LLuvia Mares

New York, Oct. 18 - Business moved along as usual Thursday in the structured products sector with Deutsche Bank AG, London Branch pricing $20.56 million securities linked to the DB Liquid Commodity index.

The bank's $20.56 million of 0% market contribution securities due Oct. 21, 2010 linked to the Deutsche Bank Liquid Commodity Index - Mean Reversion Total Return.

The payout at maturity will be par of $10,000 plus the index return minus the adjustment factor, which will lower the payout by 2% per year.

The notes are putable on Oct. 17, 2008 and Oct. 17, 2009, and the redemption amount will be determined in the same way as the payout at maturity.

Deutsche Bank Securities Inc. and Deutsche Bank Trust Co. Americas are the agents.

Deutsche's PHLX Housing notes

In a separate deal, Deutsche Bank AG, London Branch also priced $15.1 million of zero-coupon bearish autocallable optimization securities with contingent protection due Oct. 23, 2008 linked to the PHLX Housing Sector index, according to a 424B2 filing with the Securities and Exchange Commission.

The securities will be called at increasing premiums if the index closes at or below the initial index level on an observation date. The redemption amount will be par plus 8.8% if the securities are called on Jan. 22, 2008, par plus 17.6% if called on April 21, 2008, par plus 26.4% if called on July 21, 2008 and par plus 35.2% if called on Oct. 20, 2008.

If the securities are not called, the payout at maturity will be par of $10 unless the index closes above the trigger level - 140% of the initial index level - during the life of the securities, in which the payout will be par minus the index gain.

UBS Financial Services Inc. and Deutsche Bank Securities Inc. are the agents.

Goldman prices notes linked to S&P GSCI Biofuel

Goldman Sachs Group, Inc. priced a $132,000 issue of 0% notes due Sept. 26, 2011 linked to the S&P GSCI Biofuel index, according to a 424B2 filing with the Securities and Exchange Commission.

The index reflects the total returns potentially available through an unleveraged investment in four biofuel-related commodity contracts. The commodities are corn with a 38% weight, soybean oil with a 25% weight, sugar number 11 with a 28% weight and wheat with a 9% weight.

At maturity, investors will receive par plus any positive return on the index. The payout will be at least par.

Goldman, Sachs & Co. is the underwriter.

Barclays to sell notes linked to index basket

Thursday, Barclays Bank plc announced it is planning to price zero-coupon 100% principal protection notes linked to a basket of indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket comprises equal weights of the S&P 500, Dow Jones Euro Stoxx 50 and Nikkei 225 indexes.

The notes will be due between May 31, 2012 and Nov. 30, 2012, with the exact maturity to be set at pricing.

The payout at maturity will be par plus any basket gain. Investors will receive at least par.

The notes are expected to price on Nov. 27 and settle on Nov. 30.

UBS Financial Services Inc. and Barclays Capital Inc. are the underwriters.

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