Deutsche Bank changes buffer, rebate of buffered barrier rebate notes linked to gold

By Angela McDaniels

Tacoma, Wash., May 4 - Deutsche Bank AG, London Branch changed the buffer amount and expected rebate for its upcoming offering of 0% buffered barrier rebate notes due June 1, 2011 linked to the price of gold, according to an FWP filing with the Securities and Exchange Commission.

A barrier event will occur if the price of gold closes above the upper barrier - 175% of the initial price - on any day during the life of the notes.

If a barrier event has not occurred, the payout at maturity will be:

• Par plus any increase in the price of gold;

• Par if the price of gold declines by 15% or less; or

• Par minus 1% for every 1% that the price of gold declines beyond 15%.

If a barrier event has occurred, the payout will be:

• Par plus the rebate if the price of gold decreases by no more than 15% or increases by any amount; or

• Par plus the rebate and minus 1% for every 1% that the price of gold declines beyond 15%.

The rebate is expected to be 15% to 21%, with the exact percentage to be set at pricing.

Originally, the buffer amount was going to be 20% instead of 15%, and the rebate was expected to be 28% to 30%.

The notes will price on May 26 and settle on May 29.

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

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