By Andrea Heisinger
New York, March 19 - Volkswagen International Finance NV priced $3.35 billion of notes (A3/A-/) in an increased four parts on Monday, an informed source said.
A $250 million tranche of 18-month floating-rate notes was added and priced at par to yield Libor plus 60 basis points.
The $850 million of two-year floaters priced at par to yield Libor plus 75 bps.
Both of the floating-rate tranches are non-callable.
A $1.25 billion tranche of 1.625% three-year notes sold at 99.712 to yield 1.724% with a spread of 113 bps over Treasuries. The notes priced at the tight end of guidance in the 115 bps area.
There is a make-whole call at 20 bps over Treasuries.
There was a $1 billion tranche of 2.375% five-year paper priced at 99.355 to yield 2.513% with a spread of Treasuries plus 133 bps. The paper was sold at the tight end of talk in the 135 bps area.
The tranche has a make-whole call at Treasuries plus 20 bps.
Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the bookrunners.
The deal was priced under Rule 144A and Regulation S.
VW was last in the U.S. bond market with a $1.75 billion offering of three- and 10-year notes on Aug. 5, 2010. The 1.625% three-year paper from that offering sold at 93 bps over Treasuries.
The issuer is an Amsterdam-based financing arm of Wolfsburg, Germany-based auto-maker Volkswagen AG.
| Issuer: | Volkswagen International Finance NV
|
| Issue: | Notes
|
| Amount: | $3.35 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Distribution: | Rule 144A and Regulation S
|
| Trade date: | March 19
|
| Settlement date: | March 22
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
|
|
| Floaters due 2013
|
| Amount: | $250 million
|
| Maturity: | Sept. 22, 2013
|
| Coupon: | Libor plus 60 bps
|
| Price: | Par
|
| Yield: | Libor plus 60 bps
|
| Call: | Non-callable
|
|
|
| Two-year floaters
|
| Amount: | $850 million
|
| Maturity: | March 21, 2014
|
| Coupon: | Libor plus 75 bps
|
| Price: | Par
|
| Yield: | Libor plus 75 bps
|
| Call: | Non-callable
|
|
|
| Three-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | March 22, 2015
|
| Coupon: | 1.625%
|
| Price: | 99.712
|
| Yield: | 1.724%
|
| Spread: | Treasuries plus 113 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 115 bps area
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | March 22, 2017
|
| Coupon: | 2.375%
|
| Price: | 99.355
|
| Yield: | 2.513%
|
| Spread: | Treasuries plus 133 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 135 bps area
|
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