By Cristal Cody
Chicago, Aug. 10 – BMW US Capital, LLC sold a $2.5 billion four-part offering of fixed- and floating-rate notes on Monday, according to details from a market source.
The company sold two series of notes for $750 million each with an Aug. 12, 2024 maturity date, one part floating and one part fixed.
The floating-rate tranche priced with a margin over SOFR of 38 basis points.
The fixed-rate tranche priced with a 0.75% coupon and a spread of Treasuries plus 33 bps, low to talk in the Treasuries plus 55 bps to 60 bps area.
The company also priced $500 million of 1.25% five-year notes with a Treasuries plus 50 bps spread. Talk on the tranche had been in the Treasuries plus 75 bps area.
The longest-dated tranche is a series of 10-year notes that priced with a 1.95% coupon and a spread of 65 bps over Treasuries. The notes came low to talk in the Treasuries plus 90 bps area.
BofA Securities, Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, MUFG and RBC Capital Markets LLC are bookrunners for the deal.
Woodcliff Lake, N.J.-based BMW US Capital is the U.S. financing arm for the BMW German auto manufacturer.
| Issuer: | BMW US Capital, LLC
|
| Issue: | Floating-rate notes and fixed-rate notes
|
| Amount: | $2.5 billion
|
| Bookrunners: | BofA Securities, Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, MUFG and RBC Capital Markets LLC
|
| Trade date: | Aug. 9
|
|
|
| Floaters
|
| Amount: | $750 million
|
| Issue: | Floating-rate notes
|
| Maturity: | Aug. 12, 2024
|
| Coupon: | SOFR plus 38 bps
|
|
|
| 2024 notes
|
| Amount: | $750 million
|
| Issue: | Fixed-rate notes
|
| Maturity: | Aug. 12, 2024
|
| Coupon: | 0.75%
|
| Spread: | Treasuries plus 33 bps
|
| Price talk: | Treasuries plus 55 bps to 60 bps area
|
|
|
| 2026 notes
|
| Amount: | $500 million
|
| Issue: | Fixed-rate notes
|
| Maturity: | Aug. 12, 2026
|
| Coupon: | 1.25%
|
| Spread: | Treasuries plus 50 bps
|
| Price talk: | Treasuries plus 75 bps area
|
|
|
| 2031 notes
|
| Amount: | $500 million
|
| Issue: | Fixed-rate notes
|
| Maturity: | Aug. 12, 2031
|
| Coupon: | 1.95%
|
| Spread: | Treasuries plus 65 bps
|
| Price talk: | Treasuries plus 90 bps area
|
|
|
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