By Cristal Cody
Chicago, Sept. 6 – Volkswagen Group of America Finance, LLC priced $3.4 billion of notes in a five-part offering on Tuesday, according to a market source.
The offering included:
• $500 million of floating-rate notes with a two-year tenor with a SOFR plus 93 basis points coupon;
• $800 million of 5.8% notes with the same two-year tenor with a 5.8% coupon that priced at Treasuries plus 85 basis points after talk in the Treasuries plus 105 bps area;
• $900 million of 5.7% three-year notes that priced at Treasuries plus 105 bps on initial talk in the Treasuries plus 125 bps area;
• $700 million of 5.65% notes with a five-year tenor with pricing at Treasuries plus 130 bps, 20 bps lower than talk in the 150 bps area; and
• $500 million of 5.9% 10-year notes with pricing at Treasuries plus 165 bps against talk in the 185 bps area.
BBVA Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC and MUFG Securities Americas Inc. were 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: | $3.4 billion
|
| Issue: | Notes
|
| Bookrunners: | BBVA Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC and MUFG Securities Americas Inc.
|
| Trade date: | Sept. 5
|
|
|
| Two-year floaters
|
| Amount: | $500 million
|
| Issue: | Floating-rate notes
|
| Maturity: | Sept. 12, 2025
|
| Coupon: | SOFR plus 93 bps
|
| Price talk: | SOFR plus equivalent
|
|
|
| Two-year notes
|
| Amount: | $800 million
|
| Maturity: | Sept. 12, 2025
|
| Coupon: | 5.8%
|
| Spread: | Treasuries plus 85 bps
|
| Price talk: | Treasuries plus 105 bps area
|
|
|
| Three-year notes
|
| Amount: | $900 million
|
| Maturity: | Sept. 12, 2026
|
| Coupon: | 5.7%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | Treasuries plus 125 bps area
|
|
|
| Five-year notes
|
| Amount: | $700 million
|
| Maturity: | Sept. 12, 2028
|
| Coupon: | 5.65%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | Treasuries plus 150 bps area
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 12, 2033
|
| Coupon: | 5.9%
|
| Spread: | Treasuries plus 165 bps
|
| Price talk: | Treasuries plus 185 bps area
|
|
|
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