By William Gullotti and Cristal Cody
Buffalo, N.Y., June 8 – Volkswagen Group of America Finance LLC priced $3 billion of notes in four tranches tighter than talk on May 31, according to a market source.
The company sold $500 million of two-year floating-rate notes bearing interest at SOFR plus 95 basis points. Initial talk was in the SOFR plus 115 bps area.
A $900 million tranche of 3.95% three-year notes priced at a spread of Treasuries plus 125 bps. The notes were initially talked to price at the Treasuries plus 145 bps area.
Volkswagen sold $1.1 billion of 4.35% five-year notes at a spread of Treasuries plus 155 bps. Initial price guidance was in the 180 bps spread area.
In the final tranche, $500 million of 4.6% seven-year notes priced at a Treasuries plus 175 bps spread. The notes were talked to print in the 200 bps over Treasuries area.
Credit Agricole CIB, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, SG Americas Securities LLC and Wells Fargo Securities 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: | $3 billion
|
| Issue: | Senior notes
|
| Bookrunners: | Credit Agricole CIB, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, SG Americas Securities LLC and Wells Fargo Securities LLC
|
| Pricing date: | May 31
|
|
|
| Two-year floaters
|
| Amount: | $500 million
|
| Maturity: | June 7, 2024
|
| Coupon: | SOFR plus 95 bps
|
| Initial talk: | SOFR plus 115 bps area
|
|
|
| Three-year notes
|
| Amount: | $900 million
|
| Maturity: | June 6, 2025
|
| Coupon: | 3.95%
|
| Spread: | Treasuries plus 125 bps
|
| Price guidance: | Treasuries plus 145 bps area
|
|
|
| Five-year notes
|
| Amount: | $1.1 billion
|
| Maturity: | June 8, 2027
|
| Coupon: | 4.35%
|
| Spread: | Treasuries plus 155 bps
|
| Price guidance: | Treasuries plus 180 bps area
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | June 8, 2029
|
| Coupon: | 4.6%
|
| Spread: | Treasuries plus 175 bps
|
| Price guidance: | Treasuries plus 200 bps area
|
|
|
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