Deutsche Bank plans callable 20-year steepener notes tied to CMS rates

By Toni Weeks

San Diego, Jan. 18 - Deutsche Bank AG, London Branch plans to price 20-year CMS slope steepener notes due Jan. 31, 2033 linked to the 30-year and five-year Constant Maturity Swap Rates, according to an FWP with the Securities and Exchange Commission.

The coupon will be 7.5% for the first year. After that, interest will be equal to four times the spread of the 30-year CMS rate over the five-year CMS rate, minus 55 basis points, subject to a cap of 7% and a floor of 0%. Interest is payable quarterly.

The payout at maturity will be par.

The notes will be callable at par in whole but not in part on Jan. 31, 2014, Jan. 31, 2018, Jan. 31, 2023 and Jan. 31, 2028.

The notes (Cusip: 25152RUV3) are expected to settle Jan. 31.

Deutsche Bank Securities Inc. will be the agent.

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