Deutsche talks $250 million cash-settled notes linked to JPMorgan with 1% coupon, up 13% to 16%

By Abigail W. Adams

Portland, Me., April 18 – Deutsche Bank AG, London Branch plans to price $250 million in five-year cash-settled equity-linked notes tied to JPMorgan Chase & Co. after the market close on Wednesday at an issue price of 105.

Price talk is for a fixed coupon of 1% and a threshold premium of 13% to 16%, according to a market source. The initial price will be the volume weighted average price of JPMorgan stock on the day after pricing.

Deutsche Bank Securities Inc. is the bookrunner for the registered offering.

At maturity, investors will receive a cash payment based on the final price of JPMorgan stock over five valuation dates and accrued interest.

Due to the issue price of 105, investors risk losing 4.76% of the investment if the notes equal par at maturity, according to a 424B2 filing with the Securities and Exchange Commission.

There is a minimum purchase of $100,000 and the notes will be issued in minimum denominations of $1,000 and integral multiples of $1,000 in excess of that.

Deutsche Bank AG, London Branch is a subsidiary of Deutsche Bank AG, a Frankfurt-based global banking and financial services company.

JPMorgan is a financial services holding company based in New York.

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