By Cristal Cody
Tupelo, Miss., Sept. 19 – Volkswagen Group of America Finance LLC (A3/BBB+) priced a $3 billion five-part Rule 144A and Regulation S offering of notes on Thursday, according to a market source.
A $500 million tranche of two-year floating-rate notes priced at Libor plus 86 basis points.
The company sold $500 million of 2.5% two-year fixed-rate notes at a spread of Treasuries plus 83 bps.
Volkswagen priced $1 billion of 2.7% three-year notes at a spread of Treasuries plus 103 bps.
A $500 million tranche of 2.85% five-year notes priced with a Treasuries plus 123 bps spread.
The company also sold $500 million of 3.2% seven-year notes at a spread of 148 bps over Treasuries.
BofA Securities, Inc., Barclays, MUFG, TD Securities (USA) LLC and Wells Fargo Securities LLC were the bookrunners.
Volkswagen Group of America Finance is a Herndon, Va.-based financing arm and subsidiary of Volkswagen Group of America, Inc.
| Issuer: | Volkswagen Group of America Finance LLC
|
| Amount: | $3 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Barclays, MUFG, TD Securities (USA) LLC and Wells Fargo Securities LLC
|
| Trade date: | Sept. 19
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Two-year floaters
|
| Amount: | $500 million
|
| Maturity: | Sept. 24, 2021
|
| Coupon: | Libor plus 86 bps
|
|
|
| Two-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 24, 2021
|
| Coupon: | 2.5%
|
| Spread: | Treasuries plus 83 bps
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | Sept. 26, 2022
|
| Coupon: | 2.7%
|
| Spread: | Treasuries plus 103 bps
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 26, 2024
|
| Coupon: | 2.85%
|
| Spread: | Treasuries plus 123 bps
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 26, 2026
|
| Coupon: | 3.2%
|
| Spread: | Treasuries plus 148 bps
|
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