By Devika Patel
Knoxville, Tenn., Feb. 13 – American Honda Finance Corp. offered further details about a $1.6 billion sale of series A medium-term notes (A2/A+) that priced in three tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $350 million of three-year floating-rate notes at Libor plus 21 basis points. These notes priced at par.
American Honda priced $750 million of 2.65% three-year fixed-rate notes at a spread of Treasuries plus 40 bps. These notes priced at 99.86 to yield 2.699%.
The company also sold $500 million of 3.5% 10-year notes with a Treasuries plus 68 bps spread. These notes priced at 99.707 to yield 3.535%.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC and SMBC Nikko Securities America Inc. were the lead managers.
American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.
| Issuer: | American Honda Finance Corp.
|
| Amount: | $1.6 billion
|
| Description: | Medium-term fixed- and floating-rate notes
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC and SMBC Nikko Securities America Inc.
|
| Lead managers: | BNP Paribas Securities Corp. and Morgan Stanley & Co. LLC
|
| Co-managers: | Lloyds Securities Inc., RBC Capital Markets Corp., SG Americas Securities LLC, TD Securities (USA) LLC and U.S. Bancorp Investments Inc.
|
| Trade date: | Feb. 12
|
| Settlement date: | Feb. 15
|
| Ratings: | Moody’s: A2
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $350 million
|
| Maturity: | Feb. 12, 2021
|
| Price: | Par
|
| Coupon: | Libor plus 21 bps
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 12, 2021
|
| Coupon: | 2.65%
|
| Price: | 99.86
|
| Yield: | 2.699%
|
| Spread: | Treasuries plus 40 bps
|
| Call: | The greater of par and a make-whole call at Treasuries plus 10 bps
|
|
|
| 10-year notes
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| Amount: | $500 million
|
| Maturity: | Feb. 15, 2028
|
| Coupon: | 3.5%
|
| Price: | 99.707
|
| Yield: | 3.535%
|
| Spread: | Treasuries plus 68 bps
|
| Call: | The greater of par and a make-whole call at Treasuries plus 15 bps
|
|
|
|
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