By Rebecca Melvin
New York, June 11 - Volkswagen International Finance NV, a subsidiary of Volkswagen AG, sold €1.2 billion of 5.5% mandatory convertible notes at 105.64 in an add-on to its €2.5 billion issue of notes, which priced in November 2012 and are due Nov. 9, 2015.
The Regulation S mandatory convertible notes are being offered by bookrunner JPMorgan to institutional investors in Germany and other countries other than the United States.
JPMorgan has committed to subscribe for €500 million of the notes at the issue price, and Qatar Holding LLC has made a binding offer to buy a portion of the offering.
The convertibles will be redeemed at maturity by conversion into new no-par-value bearer preferred shares issued by partial use of existing conditional capital.
Proceeds of the new mandatory notes, with a denomination of €100,000, are earmarked to improve Volkswagen's capital base and to finance further growth.
Volkswagen is a Wolfsburg, Germany-based automotive company.
| Issuer: | Volkswagen AG
|
| Issue: | Subordinated mandatory convertible notes
|
| Amount: | €1.2 billion add-on
|
| Maturity: | Nov. 9, 2015
|
| Bookrunner: | JPMorgan
|
| Coupon: | 5.5%
|
| Price | 105.64
|
| Conversion price: | €154.50 (minimum) and €185.40 (maximum)
|
| Settlement date: | June 12
|
| Stock symbol: | ETR: VOW
|
| Distribution: | Regulation S
|
| Original issue: | €2.5 billion priced November 2012
|
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