Deutsche Bank plans trigger phoenix autocallables tied to Facebook

By Toni Weeks

San Luis Obispo, Calif., June 24 - Deutsche Bank AG, London Branch plans to price trigger phoenix autocallable optimization securities due Dec. 31, 2014 linked to the common stock of Facebook, Inc., according to an FWP filing with the Securities and Exchange Commission.

If Facebook stock closes at or above the trigger price - 70% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 10% to 13% per year. Otherwise, no coupon will be paid that quarter. The exact trigger price will be set at pricing.

Beginning one year after issuance, the notes will be called at par of $10 plus the contingent coupon if Facebook shares close at or above the initial price on a quarterly observation date.

If the notes are not called and Facebook shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

The notes (Cusip: 25155H250) are expected to price June 26 and settle June 28.

UBS Financial Services Inc. and Deutsche Bank Securities Inc. are the underwriters.

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