Deutsche Bank gives pricing, early results for four-note tender offer

By William Gullotti

Buffalo, N.Y., Aug. 11 – Deutsche Bank AG announced the pricing terms for its capped offer of up to $1 billion principal amount of its eligible liabilities senior notes, according to a press release on Thursday.

According to an earlier announcement on Thursday, the offer was oversubscribed as of the early tender date, and therefore the bank will accept in full the first series, prorate the second series and not accept any of the notes from the third or fourth series.

The early tender response, amounts accepted and pricing per $1,000 principal amount are as follows:

• All accepted of the $574,059,000 tendered of the $1.5 billion outstanding 3.035% eligible liabilities senior notes due May 28, 2032 (Cusip: 251526CK3) with a May 28, 2031 par call date for a total consideration of $815.20, calculated based on the 2.875% U.S. Treasury due May 15, 2032 plus 295 basis points;

• $426,066,000 accepted, or 89.78%, of the $464,213,000 tendered of the $1.75 billion outstanding 2.552% eligible liabilities senior notes due Jan. 7, 2028 (Cusip: 25160PAH0) with a Jan. 7, 2027 par call date for a total consideration of $874.21, calculated based on the 2.75% U.S. Treasury due July 31, 2027 plus 295 bps;

• None accepted of the $373,638,000 tendered of the $1.8 billion outstanding 2.311% eligible liabilities senior notes due Nov. 16, 2027 (Cusip: 251526CP2) with a Nov. 16, 2026 par call date. Pricing would have been determined using the 2.75% U.S. Treasury due July 31, 2027 plus 290 bps; and

• None accepted of the $561,606,000 tendered of the $2 billion outstanding 2.129% eligible liabilities senior notes due Nov. 24, 2026 (Cusip: 251526CE7) with a Nov. 24, 2026 par call date. Pricing would have been based on the 3% U.S. Treasury due July 15, 2025 plus 260 bps.

The calculated full tender considerations include the $30 early tender premium that will not be paid to noteholders who tender after the 5 p.m. ET on Aug. 10 early deadline, also the withdrawal deadline.

Pricing was determined at 10 a.m. ET on Aug. 11.

Early settlement is planned for Aug. 15.

The offer technically expires at 11:59 p.m. ET on Aug. 24, but no more notes will be accepted for purchase.

The purpose of the tender offer was to proactively manage the bank’s debt maturity profile and to provide liquidity to current bondholders.

Deutsche Bank Securities, Inc. is the dealer manager (866 627-0391, 212 250-2955).

Global Bondholder Services Corp. is the tender agent and information agent (212 430-3774, 855 654-2015, contact@gbsc-usa.com, https://gbsc-usa.com/registration/db).

The banking and financial services company is based in Frankfurt.

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