New Issue: Deutsche Bank prices $1.5 billion 4.5% 10-year subordinated notes at 260 bps spread

By Aleesia Forni

Virginia Beach, March 27 – Deutsche Bank AG sold on Friday a $1.5 billion offering of 4.5% 10-year subordinated tier 2 notes (Ba1/BBB-/A-) with a spread of 260 basis points over Treasuries, according to an informed source and an FWP filed with the Securities and Exchange Commission.

Pricing was at 99.61 to yield 4.549%.

The notes sold on top of guidance, which had firmed from initial talk in the 270 bps area over Treasuries.

Deutsche Bank Securities Inc. was the bookrunner.

Proceeds will be used for general corporate purposes and to further strengthen the Frankfurt-based bank’s regulatory capital base.

Issuer:	Deutsche Bank AG
Amount:	$1.5 billion
Description:	Subordinated tier 2 notes
Maturity:	April 1, 2025
Bookrunner:	Deutsche Bank Securities Inc.
Co-managers:	Academy Securities, Inc., BB&T Securities, LLC, BNY Mellon Capital Markets, LLC, Drexel Hamilton, LLC, the Huntington Investment Co., KeyBanc Capital Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., Mischler Financial Group, Inc., RBC Capital Markets, LLC, Regions Securities LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
Coupon:	4.5%
Price:	99.61
Yield:	4.549%
Spread:	260 bps over Treasuries
Trade date:	March 27
Settlement date:	April 1
Call features:	Non-callable
Ratings:	Moody’s: Ba1
	Standard & Poor’s: BBB
	Fitch: A-
Distribution:	SEC registered
Price guidance:	260 bps area over Treasuries, tightened from 270 bps area

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