By Rebecca Melvin and Cristal Cody
Concord, N.H., Jan. 12 – American Honda Finance Corp. priced a $1.75 billion offering of fixed rate medium-term notes (A3/A-) in two parts due in three years and seven years on Tuesday, according to FWP filings with the Securities and Exchange Commission.
The $1.1 billion 1.5% three-year notes priced at 99.921 to yield 1.527%, or a spread over the benchmark Treasury of 35 basis points. The spread was low to the 50 bps to 55 bps area spread talk.
The $650 million 2.25% seven-year notes priced at 99.775 to yield 2.285%. The spread is Treasuries plus 60 bps, also low to spread talk in the 80 bps area.
Both notes have the option for redemption with a make-whole premium. The premium on the three-year notes would be Treasuries plus 7.5 bps, and the premium for the seven-year notes would be Treasuries plus 10 bps.
BofA Securities Inc., Mizuho Securities USA LLC., SMBC Nikko Securities America Inc. and U.S. Bancorp Investments Inc. are the joint bookrunning managers.
American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.
| Issuer: | American Honda Finance Corp.
|
| Amount: | $1.75 billion
|
| Issue: | Fixed-rate medium-term notes, series A
|
| Bookrunners: | BofA Securities Inc., Mizuho Securities USA LLC., SMBC Nikko Securities America Inc. and U.S. Bancorp Investments Inc.
|
| Co-managers: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., MUFG and SG Americas Securities LLC
|
| Trade date: | Jan. 11
|
| Settlement date: | Jan. 13
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1.1 billion
|
| Maturity: | Jan. 13, 2025
|
| Coupon: | 1.5%
|
| Price: | 99.921
|
| Yield: | 1.527%
|
| Spread: | Treasuries plus 35 bps
|
| Call features: | Make-whole call at Treasuries plus 7.5 bps
|
| Price talk: | Treasuries plus 55 bps area
|
| Cusip: | 02665WEA5
|
|
|
| Seven-year notes
|
| Amount: | $650 million
|
| Maturity: | Jan. 12, 2029
|
| Coupon: | 2.25%
|
| Price: | 99.775
|
| Yield: | 2.285%
|
| Spread: | Treasuries plus 60 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps
|
| Price talk: | Treasuries plus 80 bps area
|
| Cusip: | 02665WEB3
|
|
|
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