Published on 7/17/2017 in the Prospect News Investment Grade Daily.
New Issue: American Honda Finance prices $1.75 billion three-part offering of notes
By Cristal Cody
Tupelo, Miss., July 17 – American Honda Finance Corp. priced $1.75 billion of series A fixed- and floating-rate medium-term notes (A1/A+/) in three tranches on Monday, according to FWP filings with the Securities and Exchange Commission.
The company sold $750 million of 18-month floating-rate notes at par to yield Libor plus 15 basis points. The interest rate will initially reset on Oct. 22, 2017 and will reset on each interest payment date.
American Honda Finance priced $300 million of three-year floating-rate notes at par to yield Libor plus 27 bps. The interest rate will reset each interest payment date beginning Oct. 20.
The $700 million tranche of 1.95% three-year fixed-rate notes priced at 99.899 to yield 1.985% and a spread of Treasuries plus 45 bps.
The bookrunners on the 18-month floaters were Barclays, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC.
Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, SG Americas Securities, LLC and Wells Fargo Securities, LLC were the bookrunners on the three-year fixed- and floating-rate issues.
American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.
| Issuer: | American Honda Finance Corp.
|
| Amount: | $1.75 billion
|
| Description: | Fixed- and floating-rate medium-term notes
|
| Trade date: | July 17
|
| Settlement date: | July 20
|
| Ratings: Moody’s: A1
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| Eighteen-month floaters
|
| Amount: | $750 million
|
| Maturity: | Jan. 22, 2019
|
| Bookrunners: | Barclays, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC
|
| Coupon: | Libor plus 15 bps; resets Oct. 22, 2017 and each interest payment date
|
| Price: | Par
|
| Yield: | Libor plus 15 bps
|
| Call feature: | Non-callable
|
|
|
| Three-year floaters
|
| Amount: | $300 million
|
| Maturity: | July 20, 2020
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, SG Americas Securities, LLC and Wells Fargo Securities, LLC
|
| Lead managers: | BNP Paribas Securities Corp. and BofA Merrill Lynch
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Lloyds Securities Inc., RBC Capital Markets, LLC, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Coupon: | Libor plus 27 bps; resets Oct. 20, 2017 and each interest payment date
|
| Price: | Par
|
| Yield: | Libor plus 27 bps
|
| Call feature: | Non-callable
|
|
|
| Three-year notes
|
| Amount: | $700 million
|
| Maturity: | July 20, 2020
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, SG Americas Securities, LLC and Wells Fargo Securities, LLC
|
| Lead managers: | BNP Paribas Securities Corp. and BofA Merrill Lynch
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Lloyds Securities Inc., RBC Capital Markets, LLC, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Coupon: | 1.95%
|
| Price: | 99.899
|
| Yield: | 1.985%
|
| Spread: | Treasuries plus 45 bps
|
| Make-whole call: Greater of par and Treasuries plus 10 bps
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
