Published on 2/12/2020 in the Prospect News High Yield Daily.
New Issue: Deutsche Bank prices $1.25 billion additional fixed-to-reset rate tier 1 notes
Chicago, Feb. 12 – Deutsche Bank AG, Frankfurt am Main priced $1.25 billion of perpetual non-cumulative fixed-to-reset rate additional tier 1 notes (B1/B+), according to an FWP filing with the Securities and Exchange Commission.
The notes bear interest at 6% initially until April 30, 2026.
The notes were sold at 100.028.
On April 30, 2026, the first interest reset date, the interest rate will be based on the five-year Treasury rate plus 452.4 basis points, resetting every five years thereafter.
Interest is payable annually.
The notes are callable at any time from Oct. 30, 2025 until April 30, 2026, and then on any annual interest payment date thereafter.
The notes will be subject to a pro rata write-down if there is a breach of the 5.125% CET1 ratio on a consolidated basis.
Deutsche Bank Securities Inc. is the bookrunner.
Citigroup Global Markets Inc. is working as underwriter and a joint lead manager.
Joint lead managers are Banca IMI S.p.A., BBVA Securities Inc., BMO Capital Markets Corp., CIBC World Markets Corp., Morgan Stanley & Co. LLC, Santander Investment Securities Inc., TD Securities (USA) LLC and UniCredit Capital Markets LLC.
Deutsche Bank is a banking and financial services company based in Frankfurt.
| Issuer: | Deutsche Bank AG, Frankfurt am Main
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| Issue: | Non-cumulative fixed-to-reset rate tier 1 notes
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| Amount: | $1.25 billion add-on
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| Maturity: | Perpetual
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| Bookrunner: | Deutsche Bank Securities Inc.
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| Underwriter: | Citigroup Global Markets Inc.
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| Joint lead managers: | Banca IMI S.p.A., BBVA Securities Inc., BMO Capital Markets Corp., CIBC World Markets Corp., Morgan Stanley & Co. LLC, Santander Investment Securities Inc., TD Securities (USA) LLC and UniCredit Capital Markets LLC
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| Senior co-managers: | Nordea Bank ABP, RBC Capital Markets, LLC and Standard Chartered Bank
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| Co-managers: | Academy Securities, Inc., Bancroft Capital LLC, Barclays Capital Inc., BNY Mellon Capital Markets, LLC, Capital Institutional Services, Inc., Citizens Capital Markets, Inc., Fifth Third Securities, Inc., KeyBanc Capital Markets Inc., Mischler Financial Group, Inc., Multi-Bank Securities, Inc., Regions Securities LLC and UBS Securities LLC
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| Initial rate: | 6%
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| Price: | 100.028
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| Re-offer yield: | 6%
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| Reset rate: | Five-year Treasuries plus 452.4 bps, resetting every five years
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| Call option: | Any time from Oct. 30, 2025 until April 30, 2026, and then any annual interest payment date thereafter
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| Pricing date: | Feb. 11
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| Settlement date: | Feb. 14
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| Ratings: | Moody’s: B1
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| S&P: B+
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| Distribution: | SEC registered
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