Volkswagen Aktiengesellschaft (VKW.L, VLKAF.PK, VLKAY.PK) on Tuesday resolved today to issue new mandatory convertible notes. The new mandatory convertible notes will be issued with similar terms and conditions as the mandatory convertible notes issued on November 9, 2012 with a coupon of 5.5% and maturity on November 9, 2015 and will be offered at an issue price of 105.64%
of their principal amount. The aggregate principal amount of the new
mandatory convertible notes will be up to 1.2 billion euros.
With this issuance, the company makes use of the strong interest
indicated by international investors to subscribe for new mandatory
convertible notes. Proceeds will be used to strengthen the capital base
of Volkswagen and to finance further growth - also in the Financial
Services Division - while maintaining the favourable liquidity position
and the good rating in comparison with Volkswagen's competitors.
The new mandatory convertible notes with a denomination of 100,000 euros will
be issued by Volkswagen International Finance N.V. under a subordinated
guarantee of Volkswagen Aktiengesellschaft. The pre-emptive rights of
existing shareholders have been excluded.
Volkswagen Aktiengesellschaft will determine the final issue volume
shortly before issuance of the mandatory convertible notes,
prospectively before start of Xetra-trading in Frankfurt on
June 12, 2013.
As Bookrunner, J.P. Morgan has committed to the company to subscribe for
new mandatory convertible notes in an aggregate principal amount of
500 million euros at the issue price.
In addition, Qatar Holding LLC has provided a binding order to J.P. Morgan to buy new mandatory convertible notes at the issue price as part of the offering.
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