Volkswagen plans €2 billion to €2.5 billion mandatory convertibles at 4.75%-5.5%, up a maximum 20%

By Rebecca Melvin

New York, Nov. 5 -Volkswagen International Finance NV, a subsidiary of Volkswagen AG, plans to price between €2 billion and €2.5 billion of mandatory convertible notes at €100,000 each that were talked to yield 4.75% to 5.5% with an initial conversion premium of up to 20%, according to a news release.

Pricing was set for Tuesday.

The Regulation S mandatory convertible notes were being offered by a syndicate of banks to institutional investors in Germany and other countries.

The convertibles, which mature Nov. 9, 2015, have an early conversion feature, or will be redeemed at maturity by conversion into new no-par-value bearer preferred shares issued by partial use of existing conditional capital.

Proceeds are earmarked to improve Volkswagen's capital base and implementation of a strategic growth and investment program.

Volkswagen is a Wolfsgurg, Germany based automotive company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.