By Susanna Moon
Chicago, Nov. 6 - Volkswagen AG said it priced €2.5 billion of subordinated mandatory convertible notes due Nov. 9, 2015 with a coupon of 5.5% and a maximum conversion premium of 20% after announcing the deal on Nov. 5.
The convertibles were issued by Volkswagen International Finance NV under the subordinated guarantee of Volkswagen AG, according to a news release.
The minimum conversion price and the maximum conversion price have been set at €154.50 and €185.40, respectively, representing a maximum conversion premium of 20%.
Volkswagen said on Nov. 5 that it planned to price between €2 billion and €2.5 billion of mandatory convertibles at €100,000 each that were talked to yield 4.75% to 5.5%.
As previously noted, the Regulation S mandatory convertible notes were offered by a syndicate of banks to institutional investors in Germany and other countries.
The convertibles 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.
| Issuer: | Volkswagen AG
|
| Issue: | Subordinated mandatory convertible notes
|
| Amount: | €2.5 billion
|
| Maturity: | Nov. 9, 2015
|
| Coupon: | 5.5%
|
| Conversion price: | €154.50 (minimum) and €185.40 (maximum)
|
| Conversion premium: | 20% maximum
|
| Pricing date: | Nov. 6
|
| Stock ticker: | ETR: VOW
|
| Stock price: | 152.35 at close on Nov. 5
|
| Distribution: | Regulation S
|
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