By Marisa Wong and Cristal Cody
Los Angeles, March 15 – Volkswagen Group of America Finance, LLC priced $4 billion of notes in five parts on Thursday, according to a market source.
Volkswagen priced $650 million of notes due 2026 at SOFR plus 83 basis points. Initial price talk was SOFR plus an equivalent spread.
The company also priced fixed-rate notes due 2026 totaling $850 million with a coupon of 5.4%. The notes priced with a spread over Treasuries of 75 bps. Initial price talk was in the Treasuries plus 95 bps area.
The company sold $1 billion of 5.3% notes due 2027 at a Treasuries plus 85 bps spread. Initial price talk was in the Treasuries plus 110 bps area.
The fourth tranche consists of $1 billion of 5.25% notes due 2029 priced at Treasuries plus 105 bps. Initial price talk was in the Treasuries plus 125 bps area.
The final tranche of $500 million of 5.6% notes due 2034 priced at Treasuries plus 138 bps. Initial price talk was in the Treasuries plus 165 bps area.
BofA, Citi, Credit Agricole CIB, RBC and Standard Chartered Bank 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
|
| Issue: | Notes
|
| Bookrunners: | BofA, Citi, Credit Agricole CIB, RBC and Standard Chartered Bank
|
| Pricing date: | March 14
|
|
|
| 2026 floaters
|
| Amount: | $650 million
|
| Maturity: | March 20, 2026
|
| Coupon: | SOFR plus 83 bps
|
| Price talk: | SOFR plus an equivalent spread
|
|
|
| 2026 notes
|
| Amount: | $850 million
|
| Maturity: | March 20, 2026
|
| Coupon: | 5.4%
|
| Spread: | Treasuries plus 75 bps
|
| Price talk: | Treasuries plus 95 bps area
|
|
|
| 2027 notes
|
| Amount: | $1 billion
|
| Maturity: | March 22, 2027
|
| Coupon: | 5.3%
|
| Spread: | Treasuries plus 85 bps
|
| Price talk: | Treasuries plus 110 bps area
|
|
|
| 2029 notes
|
| Amount: | $1 billion
|
| Maturity: | March 22, 2029
|
| Coupon: | 5.25%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | Treasuries plus 125 bps area
|
|
|
| 2034 notes
|
| Amount: | $500 million
|
| Maturity: | March 22, 2034
|
| Coupon: | 5.6%
|
| Spread: | Treasuries plus 138 bps
|
| Price talk: | Treasuries plus 165 bps area
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
