By Jennifer Chiou
New York, May 24 - Deutsche Bank AG, London Branch priced an initial $4 million of PowerShares DB 3x Long US Dollar Index Futures exchange-traded notes due June 30, 2031 linked to the DB Long USD Futures index and the DB 3-Month T-Bill index, according to a 424B2 filing with the Securities and Exchange Commission.
The inception date was May 23.
On May 17, the issuer registered up to $500 million of the notes and may offer additional notes from time to time.
The notes are putable and callable at any time. The put option is subject to a minimum of 200,000 notes, and investors may be charged a fee of up to $0.03 for each security repurchased.
The payout upon redemption or at maturity will be the repurchase value, which will be the current principal amount times the applicable index factor minus a fee of 0.95% per year.
The index factor on any valuation date will equal one plus the T-bill index return plus three times the Long USD Futures index return. The initial level used to determine the return of each index will be the level of that index on the opening day of the current month.
The principal amount is initially $20. It will be reset each month and will equal the previous current principal amount times the index factor on the monthly valuation date minus the 0.95% annual fee.
If the repurchase value ever falls to zero, the notes will be accelerated and investors will lose their entire investments.
The notes have been approved for listing on the NYSE Arca under the symbol "UUPT."
Deutsche Bank Securities Inc. is the underwriter.
Issuer: | Deutsche Bank AG, London Branch
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Issue: | PowerShares DB 3x Long US Dollar Index Futures exchange-traded notes
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Underlying indexes: | DB Long USD Futures index and the DB 3-Month T-Bill index
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Amount: | $500 million (maximum)
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Maturity: | June 30, 2031
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Coupon: | 0%
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Price: | Par of $20
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Payout at maturity: | Current principal amount times index factor minus fee of 0.95% per year; index factor will be T-Bill index return plus three times Long USD Futures index return
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Put option: | At any time, subject to minimum of 200,000 notes and fee of up to $0.03 per security; payout determined in same manner as at maturity
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Call option: | In whole at any time, with payout determined in same manner as at maturity; notes will be automatically called if repurchase value ever hits zero, and payout will be zero
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Pricing date: | May 23 (for $4 million)
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Settlement date: | May 26
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Underwriter: | Deutsche Bank Securities Inc.
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Listing: | NYSE Arca: UUPT
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Cusip: | 25154P873
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