By Angela McDaniels
Tacoma, Wash., April 29 - Deutsche Bank AG, London Branch priced $5 million of 0% DB Commodity Short exchange-traded notes due April 1, 2038 linked to the Deutsche Bank Liquid Commodity Index - Optimum Yield, according to an 8-A12 filing with the Securities and Exchange Commission.
The index is designed to reflect the performance of commodity futures contracts on crude oil, heating oil, corn, wheat, gold and aluminum. It attempts to minimize the negative effects of contango and maximize the positive effects of backwardation.
The return on the index is derived by combining the returns on the DB 3-Month T-Bill index and the Deutsche Bank Liquid Commodity Index - Excess Return. These are referred to as the T-Bill subindex and the commodity subindex, respectively.
The notes are putable at any time, subject to a minimum of 200,000 notes.
Upon redemption or at maturity, the payout will be equal to the then-current principal amount plus the index factor on the valuation date minus a fee equal to 0.75% per year.
The index factor on each day will be equal to sum of the T-Bill subindex return minus the commodity subindex return. The principal amount is initially $25. It will be reset each month and will equal the previous current principal amount plus the index factor on the monthly valuation date minus the 0.75% annual fee.
If the index factor is zero on any trading day, the notes will be accelerated and investors will lose their entire investments.
Deutsche Bank has registered to sell up to $500 million of the notes.
The company said the notes will trade on the NYSE Arca under the symbol "DDP."
| Issuer: | Deutsche Bank AG, London Branch
|
| Issue: | DB Short exchange-traded notes
|
| Underlying index: | Deutsche Bank Liquid Commodity Index - Optimum Yield
|
| Amount: | $5 million
|
| Maturity: | April 1, 2038
|
| Coupon: | 0%
|
| Price: | Par of $25
|
| Payout at maturity: | The current principal amount plus the index factor minus a fee of 0.75% per year; index factor will equal the sum of the return on the DB 3-Month T-Bill index minus the return on the Deutsche Bank Liquid Commodity Index - Optimum Yield Excess Return
|
| Put: | At any time, subject to a minimum of 200,000 notes; calculated in the same manner as payout at maturity
|
| Call: | Automatically if the index factor ever hits zero; payout will be zero
|
| Pricing date: | April 28
|
| Settlement date: | May 1
|
| Listing: | NYSE Arca: DDP
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
