By Angela McDaniels
Tacoma, Wash., June 17 - Deutsche Bank AG, London Branch priced $5 million of 0% PowerShares DB Crude Oil Double Long exchange-traded notes due June 1, 2038 linked to the Deutsche Bank Liquid Commodity Index - Optimum Yield Crude Oil, according to an 8-A12B filing with the Securities and Exchange Commission.
The initial terms of the deal were released on Monday, and the issue size was disclosed on Tuesday. The company has registered to sell up to $500 million of the ETNs.
The index is designed to reflect the changes in the market value of selected crude oil futures contracts. 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 - Optimum Yield Crude Oil 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 the sum of the T-Bill subindex return plus 200% of 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.
The company said the notes will trade on the NYSE Arca under the symbol "DXO."
The notes are marketed through Invesco PowerShares Capital Management LLC.
Issuer: | Deutsche Bank AG, London Branch
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Issue: | PowerShares DB Double Long exchange-traded notes
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Underlying index: | Deutsche Bank Liquid Commodity Index - Optimum Yield Crude Oil
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Amount: | $5 million
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Maturity: | June 1, 2038
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Coupon: | 0%
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Price: | Par of $25
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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 plus 200% of the return on the Deutsche Bank Liquid Commodity Index - Optimum Yield Crude Oil Excess Return
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Put: | At any time, subject to a minimum of 200,000 notes; calculated in the same manner as payout at maturity
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Call: | Automatically if the index factor ever hits zero; payout will be zero
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Pricing date: | June 16
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Settlement date: | June 19
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Listing: | NYSE Arca: DXO
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