By Cristal Cody
Tupelo, Miss., May 7 – Volkswagen Group of America Finance LLC (A3/BBB+) priced $4 billion of notes in four tranches on Wednesday, according to a market source.
A $1.5 billion tranche of 2.9% two-year notes priced at a spread of Treasuries plus 275 basis points.
The company sold $1 billion of 3.125% three-year notes at a spread of Treasuries plus 290 bps.
A $1 billion offering of 3.35% five-year notes priced at a spread of Treasuries plus 300 bps.
Also, $500 million of 3.75% 10-year notes priced at a Treasuries plus 305 bps spread.
Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC and Morgan Stanley & Co. LLC were the bookrunners.
Volkswagen Group of America Finance is a Herndon, Va.-based financing arm and subsidiary of Volkswagen Group of America, Inc.
| Issuer: | Volkswagen Group of America Finance LLC
|
| Amount: | $4 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC and Morgan Stanley & Co. LLC
|
| Trade date: | May 6
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Two-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | May 13, 2022
|
| Coupon: | 2.9%
|
| Spread: | Treasuries plus 275 bps
|
| Price guidance: | Treasuries plus 315 bps area
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 12, 2023
|
| Coupon: | 3.125%
|
| Spread: | Treasuries plus 290 bps
|
| Price guidance: | Treasuries plus 325 bps area
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 13, 2025
|
| Coupon: | 3.35%
|
| Spread: | Treasuries plus 300 bps
|
| Price guidance: | Treasuries plus 340 bps area
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | May 13, 2030
|
| Coupon: | 3.75%
|
| Spread: | Treasuries plus 305 bps
|
| Price guidance: | Treasuries plus 355 bps area
|
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