DGAP-UK-Regulatory: VOLKSWAGEN AG: VOLKSWAGEN AKTIENGESELLSCHAFT resolves to issue new mandatory convertible notes complementing the existing mandatory convertible notes

VOLKSWAGEN AG  / Bond

11.06.2013 19:05

Dissemination of a UK Regulatory Announcement, transmitted by
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The issuer is solely responsible for the content of this announcement.
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VOLKSWAGEN AKTIENGESELLSCHAFT resolves to issue new mandatory 
convertible notes complementing the existing mandatory convertible notes 
issued in November 2012
  
Volkswagen Aktiengesellschaft has 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 9th November 2012 with a coupon of 5.5% and maturity on 9th 
November 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 EUR1.2 billion. 
  
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 EUR100,000 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. The new mandatory convertible 
notes will initially be issued under an interim ISIN and, after a period 
of 40 days, will be consolidated and form a single series of notes with 
the existing mandatory convertible notes issued in November 2012 under 
the ISIN DE000A1HCC83. The mandatory convertible notes will be redeemed 
at maturity by converting the repayment claims of the holders of the 
mandatory convertible notes into new no par-value bearer preferred 
shares issued by partial utilisation of the existing conditional capital 
of Volkswagen Aktiengesellschaft. 
  
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 
12th June 2013.
  
As Bookrunner, J.P. Morgan has committed to the Company to subscribe for 
new mandatory convertible notes in an aggregate principal amount of 
EUR500 million 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.
  
J.P. Morgan, in their role as Bookrunner for the total issue volume, 
will now start with the order taking process for the new mandatory 
convertible notes. The mandatory convertible notes will be offered via 
international private placements to institutional investors in Germany 
and other jurisdictions outside the United States of America.
  
The investors in the new mandatory convertible notes will in addition 
pay interest accrued from and including 9th June 2013 (being the 
interest commencement date of the new mandatory convertible notes) to 
but excluding the closing date of the new mandatory convertible notes.
  
Wolfsburg, June 11, 2013
  
VOLKSWAGEN AKTIENGESELLSCHAFT - The Board of Management
  
  


11.06.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:           English
Company:            VOLKSWAGEN AG
                    Brieffach 1849
                    38436 Wolfsburg
                    Germany
Phone:              +49 (0)5361 9 - 49840
Fax:                +49 (0)5361 9 - 30411
E-mail:             christine.ritz@volkswagen.de
Internet:           www.volkswagenag.com/ir
ISIN:               DE0007664039, DE0007664005
Indices:            DAX, Euro Stoxx 50
Listed:             Regulierter Markt in Berlin, Düsseldorf, Frankfurt
                    (Prime Standard), Hamburg, Hannover, München,
                    Stuttgart; Terminbörse EUREX; London, Luxemburg, SIX
Category Code:      IOD
LSE Ticker:         VKW
Sequence Number:    1484
Time of Receipt:    Jun 11, 2013 18:28:43
 
End of Announcement                             DGAP News-Service
 
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