By Aleesia Forni
Virginia Beach, July 9 – American Honda Finance Corp was in Thursday’s primary with a $1.25 billion offering of senior notes (A1/A+/) in two parts, a market source said.
There was $750 million of 1.6% three-year notes sold with a spread of Treasuries plus 70 basis points.
A $500 million three-year floating-rate tranche sold with a coupon of Libor plus 46 bps.
Both tranches sold at the tight end of price guidance.
Proceeds will be used for general corporate purposes.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities and Wells Fargo Securities LLC were the bookrunners.
The U.S. arm of Honda Financial Services is based in Torrance, Calif.
| Issuer: | American Honda Finance
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| Issue: | Senior notes
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| Amount: | $1.25 billion
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| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities, Wells Fargo Securities LLC
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| Trade date: | July 9
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| Ratings: | Moody’s: A1
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| Standard & Poor’s: A+
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| Distribution: | SEC-registered
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| Three-year notes
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| Amount: | $750 million
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| Maturity: | July 13, 2018
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| Coupon: | 1.6%
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| Spread: | Treasuries plus 70 bps
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| Price guidance: | Treasuries plus 70 bps to 73 bps bps area
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| Three-year floaters
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| Amount: | $500 million
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| Maturity: | July 13, 2018
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| Coupon: | Libor plus 46 bps
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| Price guidance: | Libor plus 46 bps to 49 bps
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