By William Gullotti and Cristal Cody
Buffalo, N.Y., March 26 – BMW US Capital, LLC sold a $3.25 billion five-part offering of fixed- and floating-rate notes (A2/A) on Monday, according to information provided by a market source on Tuesday.
The $700 million two-year floating-rate tranche priced with a margin over SOFR of 55 basis points.
The fixed-rate tranche of two-year notes, totaling $600 million and carrying a coupon of 5.05%, priced at a spread of 45 bps over Treasuries. Initial price talk was in the Treasuries plus 70 bps area.
The company priced two tranches of 4.9% notes. The $650 million tranche of three-year notes priced at 55 bps over Treasuries, tight to initial talk in the Treasuries plus 80 bps area. The $800 million tranche of five-year notes also priced tight to initial talk at Treasuries plus 70 bps versus talk in the Treasuries plus 90 bps area.
The longest-dated tranche is a $500 million series of 10-year notes that priced with a 5.15% coupon and a spread of 90 bps over Treasuries. The notes also came low to talk in the Treasuries plus 110 bps area.
HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and SMBC Nikko Securities America Inc. are bookrunners.
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
|
| Amount: | $3.25 billion
|
| Issue: | Floating-rate notes and fixed-rate notes
|
| Bookrunners: | HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and SMBC Nikko Securities America Inc.
|
| Trade date: | March 25
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
|
|
| 2026 floaters
|
| Amount: | $700 million
|
| Issue: | Floating-rate notes
|
| Maturity: | April 2, 2026
|
| Coupon: | SOFR plus 55 bps
|
| Initial talk: | SOFR plus equivalent
|
|
|
| 2026 notes
|
| Amount: | $600 million
|
| Issue: | Notes
|
| Maturity: | April 2, 2026
|
| Coupon: | 5.05%
|
| Spread: | Treasuries plus 45 bps
|
| Price talk: | Treasuries plus 70 bps area
|
|
|
| 2027 notes
|
| Amount: | $650 million
|
| Issue: | Notes
|
| Maturity: | April 2, 2027
|
| Coupon: | 4.9%
|
| Spread: | Treasuries plus 55 bps
|
| Price talk: | Treasuries plus 80 bps area
|
|
|
| 2029 notes
|
| Amount: | $800 million
|
| Issue: | Notes
|
| Maturity: | April 2, 2029
|
| Coupon: | 4.9%
|
| Spread: | Treasuries plus 70 bps
|
| Price talk: | Treasuries plus 90 bps area
|
|
|
| 2034 notes
|
| Amount: | $500 million
|
| Issue: | Notes
|
| Maturity: | April 2, 2034
|
| Coupon: | 5.15%
|
| Spread: | Treasuries plus 90 bps
|
| Price talk: | Treasuries plus 110 bps area
|
|
|
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