By William Gullotti and Cristal Cody
Buffalo, N.Y., Nov. 8 – Volkswagen Group of America Finance LLC priced $2.25 billion of notes in three parts on Tuesday, according to a market source.
The company sold $750 million 6% notes due 2026, priced at 135 basis points over Treasuries. Initial price talk was in the Treasuries plus 150 bps area.
Volkswagen sold $700 million of 6.2% notes due 2028 at a spread of 170 bps over Treasuries, tight to initial talk in the Treasuries plus 185 bps area.
In the final tranche, $800 million of 6.45% seven-year notes priced at a Treasuries plus 190 bps spread. The notes were talked to print in the 205 bps over Treasuries area.
Barclays, J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc. 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: | $2.25 billion
|
| Issue: | Notes
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC
|
| Pricing date: | Nov. 7
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Maturity: | Nov. 16, 2026
|
| Coupon: | 6%
|
| Spread: | Treasuries plus 135 bps
|
| Initial talk: | Treasuries plus 150 bps area
|
|
|
| Five-year notes
|
| Amount: | $700 million
|
| Maturity: | Nov. 16, 2028
|
| Coupon: | 6.2%
|
| Spread: | Treasuries plus 170 bps
|
| Initial talk: | Treasuries plus 185 bps area
|
|
|
| Seven-year notes
|
| Amount: | $800 million
|
| Maturity: | Nov. 16, 2030
|
| Coupon: | 6.45%
|
| Spread: | Treasuries plus 190 bps
|
| Initial talk: | Treasuries plus 205 bps area
|
|
|
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