By Angela McDaniels
Tacoma, Wash., Sept. 30 - Deutsche Bank AG, London Branch said it had $2.5 million of 0% PowerShares DB Base Metals Short exchange-traded notes due June 1, 2038 linked to the Deutsche Bank Liquid Commodity Index - Optimum Yield Industrial Metals outstanding as of Sept. 29.
In June 2008, the company sold $5 million of the notes and registered to sell up to $500 million in total. It will sell additional notes from time to time, according to a 424B3 filing with the Securities and Exchange Commission.
The index is designed to reflect the changes in the market value of a basket of aluminum, copper and zinc futures. 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 Industrial Metals 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 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.
The notes are listed on the NYSE Arca under the symbol "BOS."
Deutsche Bank Securities Inc. is the underwriter.
| Issuer: | Deutsche Bank AG, London Branch
|
| Issue: | PowerShares DB Base Metals Short exchange-traded notes
|
| Underlying index: | Deutsche Bank Liquid Commodity Index - Optimum Yield Industrial Metals
|
| Amount: | $2.5 million, decreased from $5 million
|
| Maturity: | June 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 Industrial Metals 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
|
| Inception date: | June 16, 2008
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| Settlement date: | June 19, 2008
|
| Underwriter: | Deutsche Bank Securities Inc.
|
| Listing: | NYSE Arca: BOS
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