Deutsche plans callable leveraged steepener notes tied to CMS rates

New York, Dec. 7 – Deutsche Bank AG, London Branch plans to price callable leveraged steepener notes due Dec. 23, 2035, according to an FWP with the Securities and Exchange Commission.

The coupon will be 10% for the first year. For the next five years, up to Dec. 23, 2021, interest will be equal to 12 times the reference rate. After that, interest will be set at 15 times the reference rate. The reference rate is the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate minus 87.5 basis points. The interest rate is capped at 10% and has a floor of 0%.

Interest is payable quarterly.

The payout at maturity will be par.

The notes will be callable in whole on Dec. 23, 2016 and on Dec. 23 of any succeeding year.

Deutsche Bank Securities Inc. is the agent. Morgan Stanley & Co. LLC is a dealer.

The notes are expected to price in December and settle on Dec. 23.

The Cusip is 25152R2W2 and the estimated initial value is between $862.40 and $892.40 per $1,000 principal amount.

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