By Cristal Cody
Prospect News, Jan. 24 - VW Credit Canada Inc. sold an upsized C$500 million in two tranches of notes (A3//DBRS: A) on Monday, sources said.
The sale included C$250 million in a reopening of the 2.55% notes due Nov. 18, 2013 priced at 99.514 to yield 2.731%. The notes priced at a spread of 77.6 basis points over the Canadian government benchmark, according to a term sheet. The sale was upsized from C$150 million and talked at the 78 bps area.
The company also sold C$250 million of 3.6% notes due Feb. 1, 2016 at 99.905 to yield 3.621%. The notes priced at a spread of 101.9 bps over the Canadian government benchmark. The sale was upsized from C$200 million.
The five-year notes were talked at 100 bps over the government benchmark.
TD Securities Inc. and RBC Capital Markets Corp. were the lead bookrunners. BMO Capital Markets Corp. was a co-manager.
VC Credit Canada is the Quebec-based financial service provider for Volkswagen Group Canada dealerships.
| Issuer: | VW Credit Canada Inc.
|
| Amount: | C$500 million
|
| Bookrunners: | TD Securities Inc., RBC Capital Markets Corp.
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| Co-manager: | BMO Capital Markets Corp.
|
| Pricing date: | Jan. 24
|
| Ratings: | Moody's: A3
|
| DBRS: A
|
| Distribution: | Canada
|
|
|
| Notes due 2013
|
| Amount: | C$250 million reopening, increased from C$150 million
|
| Maturity: | Nov. 18, 2013
|
| Coupon: | 2.55%
|
| Price: | 99.514
|
| Yield: | 2.731%
|
| Spread: | 77.6 bps over Canadian government benchmark
|
| Price talk: | 78 bps area
|
|
|
| Notes due 2016
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| Amount: | C$250 million, increased from C$200 million
|
| Maturity: | Feb. 1, 2016
|
| Coupon: | 3.6%
|
| Price: | 99.905
|
| Yield: | 3.621%
|
| Spread: | 101.9 bps over Canadian government benchmark
|
| Price talk: | 100 bps area
|
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