Deutsche Bank Prices 8 Billion Stock Offering At 35% Discount

Two weeks after Deutsche Bank first announced it would raise 8 billion in capital as part of a comprehensive restructuring, the German lender on Sunday announced the terms of its upcoming massive dilution.
In a nutshell, Deutsche Bank said it will raise 8 billion ($8.6 billion) by selling stock at a 35% discount to Friday’s closing price in a rights offering. The TERP (Theoretical ex-right price) of 15.79, is based on the last closing price of 17.86. The transaction subscription price is 11.65. The Subscription price represents a 26% discount to TERP based on the March 17 closing price.
The mechanics of the offering: Deutsche Bank will issue 687.5 million new shares at 11.65 apiece, it said in a statement Sunday, in-line with the firm’s March 5 announcement on the planned sale. The offer compares with the stock’s closing price of 17.86 on Friday, and is almost 41% lower than where the stock traded when Bloomberg first broke the news of the imminent capital raising on March 3.
As part of the rights offering, DB shareholders may subscribe for 1 new ordinary share for every 2 existing shares held. The subscription rights expected to be traded on German exchanges March 21-April 4, and on NYSE March 21-31. As Bloomberg adds, the reference price for rights is expected to be approximately 2.07.

This post was published at Zero Hedge on Mar 19, 2017.