By Andrea Heisinger
New York, March 9 - American Honda Finance Corp. priced $1 billion of notes (A1/A+/) in two tranches on Tuesday, an informed source said.
The $500 million of 2.375% three-year notes priced at 99.96 to yield 2.389%, or 100 basis points over Treasuries. This was well tight of talk in the 110 bps area, the source said.
A $500 million tranche of 3.5% five-year notes sold at 99.782 to yield 3.548%, or Treasuries plus 120 bps. This was also at the tightest end of guidance in the 130 bps area.
The deal was well-oversubscribed, the source said.
Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. were the bookrunners.
The retail financing unit for Honda and Acura vehicles is based in Torrance, Calif.
| Issuer: | American Honda Finance Corp.
|
| Issue: | Notes
|
| Amount: | $1 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc.
|
| Trade date: | March 9
|
| Settlement date: | March 16
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | March 18, 2013
|
| Coupon: | 2.375%
|
| Price: | 99.96
|
| Yield: | 2.389%
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | 110 bps area
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | March 16, 2015
|
| Coupon: | 3.5%
|
| Price: | 99.782
|
| Yield: | 3.548%
|
| Spread: | Treasuries plus 120 bps
|
| Price talk: | 130 bps area
|
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