Volkswagen Group of America Finance launches $4 billion of notes in four tranches

By Cristal Cody

Tupelo, Miss., May 6 – Volkswagen Group of America Finance LLC (A3/BBB+) launched $4 billion of notes in four tranches on Wednesday, according to a market source.

A $1.5 billion tranche of two-year notes was launched at a spread of Treasuries plus 275 basis points.

Initial price talk was in the 315 bps spread area.

The company launched $1 billion of three-year notes at a spread of Treasuries plus 290 bps, tighter than talk in the 325 bps spread area.

A $1 billion offering of five-year notes was launched at a spread of Treasuries plus 300 bps versus initial talk in the 340 bps spread area.

Also, $500 million of 10-year notes were launched at a Treasuries plus 305 bps spread. Initial price talk was in the 355 bps over Treasuries area.

Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC and Morgan Stanley & Co. LLC are the bookrunners.

Volkswagen Group of America Finance is a Herndon, Va.-based financing arm and subsidiary of Volkswagen Group of America, Inc.

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