By Andrea Heisinger
New York, Aug. 5 - Volkswagen International Finance NV sold $1.75 billion of notes (A3/A-) in two tranches on Thursday under Rule 144A, a source close to the sale said.
A $1 billion tranche of 1.625% three-year notes priced at 99.7 to yield 1.728% with a spread of 93 basis points over Treasuries. This was tighter than talk in the 100 bps area. The tranche has a make-whole call at Treasuries plus 15 bps.
The second $750 million tranche of 4% 10-year notes priced at 99.105 to yield 4.11% with a spread of Treasuries plus 120 bps. This was at the tight end of guidance in the 125 bps area. The tranche is callable at a make-whole amount of Treasuries plus 20 bps.
Bank of America Merrill Lynch, Citigroup Global Markets and J.P. Morgan Securities were the bookrunners.
The financing arm of Volkswagen is based in Amsterdam.
| Issuer: | Volkswagen International Finance NV
|
| Issue: | Notes
|
| Amount: | $1.75 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets, J.P. Morgan Securities
|
| Distribution: | Rule 144A
|
| Trade date: | Aug. 5
|
| Settlement date: | Aug. 12
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | Aug. 12, 2013
|
| Coupon: | 1.625%
|
| Price: | 99.7
|
| Yield: | 1.728%
|
| Spread: | Treasuries plus 93 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 100 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 12, 2020
|
| Coupon: | 4%
|
| Price: | 99.105
|
| Yield: | 4.11%
|
| Spread: | Treasuries plus 120 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 125 bps area
|
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