Published on 1/8/2020 in the Prospect News Investment Grade Daily.
New Issue: American Honda Finance prices $1.75 billion of notes in three parts
By Devika Patel
Knoxville, Tenn., Jan. 8 – American Honda Finance Corp. priced $1.75 billion of medium-term notes (A2/A) in three tranches on Tuesday, according to FWPs filed with the Securities and Exchange Commission.
The company sold $400 million of floating-rate notes due May 10, 2023 at Libor plus 37 basis points. These notes priced at par.
An $850 million tranche of 1.95% notes due May 10, 2023 priced at a spread of Treasuries plus 40 bps. These notes priced at 99.963 to yield 1.962%.
Also, $500 million of 2.35% seven-year notes came at a Treasuries plus 63 bps spread. These notes priced at 99.917 to yield 2.363%.
BofA Securities, Inc., J.P. Morgan Securities LLC, SG Americas Securities LLC and SMBC Nikko Securities America, Inc. were the bookrunners.
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
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, SG Americas Securities LLC and SMBC Nikko Securities America, Inc.
|
| Co-managers: | ANZ Securities, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments Inc., Loop Capital Markets LLC, Mischler Financial Group, Inc. and Samuel A. Ramirez & Co. Inc.
|
| Trade date: | Jan. 7
|
| Settlement date: | Jan. 10
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
|
|
| Floaters
|
| Amount: | $400 million
|
| Description: | Floating-rate notes
|
| Maturity: | May 10, 2023
|
| Coupon: | Libor plus 37 bps
|
| Price: | Par
|
| Yield: | Libor plus 37 bps
|
| Call: | Non-callable
|
|
|
| Notes due 2023
|
| Amount: | $850 million
|
| Description: | Fixed-rate notes
|
| Maturity: | May 10, 2023
|
| Coupon: | 1.95%
|
| Price: | 99.963
|
| Yield: | 1.962%
|
| Spread: | Treasuries plus 40 bps
|
| Call: | Greater of a make-whole call at Treasuries plus 10 bps and par
|
|
|
| Notes due 2027
|
| Amount: | $500 million
|
| Description: | Fixed-rate notes
|
| Maturity: | Jan. 8, 2027
|
| Coupon: | 2.35%
|
| Price: | 99.917
|
| Yield: | 2.363%
|
| Spread: | Treasuries plus 63 bps
|
| Call: | Greater of a make-whole call at Treasuries plus 10 bps and par
|
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