By Cristal Cody
Tupelo, Miss., Nov. 8 – Volkswagen Group of America Finance LLC (A3/BBB+) priced $8 billion of notes in seven tranches in a Rule 144A and Regulation S offering on Wednesday, according to a market source.
A $1.25 billion tranche of two-year floating-rate notes priced at Libor plus 77 basis points.
The company also priced $1.25 billion of 3.875% two-year fixed-rate notes with a spread of Treasuries plus 95 bps.
A $750 million offering of three-year floating-rate notes priced at Libor plus 94 bps.
A $1.5 billion tranche of 4% three-year fixed-rate notes was sold at a Treasuries plus 110 bps spread.
Volkswagen sold $1.25 billion of 4.25% five-year notes with a spread of 130 bps over Treasuries.
Also, $750 million of 4.625% seven-year notes printed with a 150 bps over Treasuries spread.
In the final tranche, the company sold $1.25 billion of 4.75% 10-year notes at spread of 165 bps over Treasuries.
The company held fixed income investor calls on Tuesday and Wednesday for the deal.
BBVA Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Mizuho Securities USA LLC were the bookrunners.
Volkswagen Group of America is a Herndon, Va.-based financing arm and subsidiary of Volkswagen Group of America, Inc.
| Issuer: | Volkswagen Group of America Finance LLC
|
| Amount: | $8 billion
|
| Description: | Senior notes
|
| Bookrunners: | BBVA Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Mizuho Securities USA LLC
|
| Trade date: | Nov. 7
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Fixed income investor calls
|
|
|
| Two-year floaters
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 13, 2020
|
| Coupon: | Libor plus 77 bps
|
|
|
| Two-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 13, 2020
|
| Coupon: | 3.875%
|
| Spread: | Treasuries plus 95 bps
|
|
|
| Three-year floaters
|
| Amount: | $750 million
|
| Maturity: | Nov. 12, 2021
|
| Coupon: | Libor plus 94 bps
|
|
|
| Three-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Nov. 12, 2021
|
| Coupon: | 4%
|
| Spread: | Treasuries plus 110 bps
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 13, 2023
|
| Coupon: | 4.25%
|
| Spread: | Treasuries plus 130 bps
|
|
|
| Seven-year notes
|
| Amount: | $750 million
|
| Maturity: | Nov. 13, 2025
|
| Coupon: | 4.625%
|
| Spread: | Treasuries plus 150 bps
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 13, 2028
|
| Coupon: | 4.75%
|
| Spread: | Treasuries plus 165 bps
|
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