By Aleesia Forni
Virginia Beach, May 19 – Volkswagen Group of America Finance LLC sold a $2.8 billion issue of notes (A2/A/) on Tuesday in four tranches, according to a market source.
The issuer priced $750 million of floating-rate notes due Nov. 22, 2016 at par to yield Libor plus 28 basis points.
A $1 billion 1.65% note due May 22, 2018 sold at 99.875 to yield 1.693%, or Treasuries plus 68 bps.
There was also $300 million of floating-rate notes due May 22, 2018 sold at par to yield Libor plus 47 bps.
A $750 million tranche of 2.4% notes due May 22, 2020 priced at 99.855 to yield 2.431%, or Treasuries plus 83 bps.
Bookrunners for the Rule 144A and Regulation S deal are Citigroup Global Markets Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC and Societe Generale.
Proceeds will be used for general corporate purposes.
The company is a subsidiary of Volkswagen AG, a Wolfsburg, Germany-based automaker.
| Issuer: | Volkswagen Group of America Finance LLC
|
| Issue: | Notes
|
| Amount: | $2.8 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, Societe Generale
|
| Trade date: | May 19
|
| Settlement date: | May 22
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| 18-month floaters
|
| Amount: | $750 million
|
| Maturity: | Nov. 22, 2016
|
| Coupon: | Libor plus 28 bps
|
| Price: | Par
|
| Yield: | Libor plus 28 bps
|
| Price talk: | Libor plus 35 bps area
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 22, 2018
|
| Coupon: | 1.65%
|
| Price: | 99.875
|
| Yield: | 1.693%
|
| Spread: | Treasuries plus 68 bps
|
| Price guidance: | Treasuries plus mid-70 bps area
|
| Make-whole call: | Treasuries plus 10 bps
|
|
|
| Three-year floaters
|
| Amount: | $300 million
|
| Maturity: | May 22, 2018
|
| Coupon: | Libor plus 47 bps
|
| Price: | Par
|
| Yield: | Libor plus 47 bps
|
| Price guidance: | Libor equivalent
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | May 22, 2020
|
| Coupon: | 2.4%
|
| Price: | 99.855
|
| Yield: | 2.431%
|
| Spread: | Treasuries plus 83 bps
|
| Price guidance: | Treasuries plus low- to mid-90 bps area
|
| Make-whole call: | Treasuries plus 15 bps
|
|
|
|
|
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