Published on 10/2/2009 in the Prospect News Structured Products Daily.
New Issue: Deutsche prices $5.66 million market contribution securities tied to DB Liquid Alpha
By Jennifer Chiou
New York, Oct. 2 - Deutsche Bank AG, London Branch priced $5.66 million of 0% market contribution securities due Oct. 6, 2014 linked to the Deutsche Bank Liquid Alpha USD 5 Total Return index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are putable and callable on Oct. 6, 2010, Oct. 5, 2011, Oct. 5, 2012 and Oct. 7, 2013.
The payout on redemption or at maturity will be par plus the index return minus the adjustment factor of 1.75% per year.
Because of the adjustment factor, investors will lose some of their principal at maturity if the index does not increase by at least 9.6%.
The index is designed to reflect the combined return of a number of constituent indexes selected from a pool of Deutsche Bank or Standard & Poor's indexes that are categorized into one of five asset classes: equity, rates, commodities, foreign exchange and cash. The constituent indexes are selected using a model that identifies the portfolio that, if the index had been comprised of that portfolio over the prior 60-business-day period, would have generated the highest level of annualized return at a predetermined level of volatility.
Deutsche Bank Securities Inc. and Deutsche Bank Trust Co. Americas are the agents.
| Issuer: | Deutsche Bank AG, London Branch
|
| Issue: | Market contribution securities
|
| Underlying index: | Deutsche Bank Liquid Alpha USD 5 Total Return index
|
| Amount: | $5.66 million
|
| Maturity: | Oct. 6, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus the index return minus the adjustment factor, which lowers the payout by 1.75% per year
|
| Call option: | On Oct. 6, 2010, Oct. 5, 2011, Oct. 5, 2012 and Oct. 7, 2013; payout determined in same way as at maturity
|
| Put option: | On Oct. 6, 2010, Oct. 5, 2011, Oct. 5, 2012 and Oct. 7, 2013; payout determined in same way as at maturity
|
| Initial index level: | 2,933.617
|
| Pricing date: | Sept. 30
|
| Settlement date: | Oct. 5
|
| Agents: | Deutsche Bank Securities Inc. and Deutsche Bank Trust Co. Americas
|
| Fees: | None
|
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