Deutsche Bank prices $1 billion 6.625% perpetual trust preferreds

By Andrea Heisinger

Omaha, July 13 - On a quiet day in investment-grade trading, Deutsche Bank AG priced a $1 billion offering of perpetual 6.625% non-cumulative trust preferred securities (Aa3/A/A+) at par of $25.

The securities come with a 15-day, $150 million overallotment option.

Joint bookrunners on the deal were Deutsche Bank Securities, Citigroup, Morgan Stanley and Wachovia Securities.

The securities were sold through Deutsche Bank Capital Funding Trust IX.

Deutsche Bank intends to use the proceeds from the sale of the initial obligation for general corporate purposes, and expects to treat the underlying class B preferred securities as consolidated Tier 1 regulatory capital.

Also in the financial services sector, Lehman Brothers Holdings Inc. late Thursday priced $5 billion of notes in three tranches.

The investment bank sold $1.5 billion of senior notes (A1/A+/AA-) at Treasuries plus 100 basis points. The 6% notes priced at 99.898 to yield 6.024%.

Meanwhile a $2 billion tranche of 6.5% 10-year subordinated notes (A2/A/A+) priced at Treasuries 140 bps, coming at 99.826 to yield 6.524%.

A second subordinated tranche, $1.5 billion tranche of 6.875% 30-year notes, came at Treasuries plus 170 bps, selling at 99.297 to yield 6.931%.

Lehman Brothers Inc. was the bookrunner.

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