By Mary-Katherine Stinson
Lexington, Ky., Jan. 11 – American Honda Finance Corp. priced $1.3 billion of notes in three parts (A3/A-) on Tuesday, according to multiple FWPs filed with the Securities and Exchange Commission.
The deal included $300 million of floating-rate medium-term notes due Jan. 12, 2026. These notes priced at par with a rate of Treasuries plus 92 basis points.
With the same 2026 maturity date, there was a companion tranche for $500 million of 4.75% fixed-rate medium-term notes. These notes priced at 99.942 to yield 4.771%, or at Treasuries plus 80 bps.
The company also priced $500 million of 4.7% fixed-rate medium-term notes due Jan. 12, 2028. These notes priced at 99.802 to yield 4.745%, or at a spread of 103 bps to Treasuries.
The 2026 floating-rate notes are non-callable.
The two tranches of fixed rate notes are callable anytime at Treasuries plus 15 bps for the 2026 notes and at Treasuries plus 20 bps for the 2028 notes.
Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.
The U.S. financing arm of Honda Financial Services is based in Torrance, Calif.
| Issuer: | American Honda Finance Corp.
|
| Amount: | $1.3 billion
|
| Bookrunners: | Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC
|
| Co-managers: | ANZ Securities, Inc., ING Financial Markets LLC, SG Americas Securities, LLC and TD Securities (USA) LLC
|
| Trade date: | Jan. 10
|
| Settlement date: | Jan. 12
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| 2026 floating-rate notes
|
| Amount: | $300 million
|
| Issue: | Floating-rate notes
|
| Maturity: | Jan. 12, 2026
|
| Coupon: | SOFR plus 92 bps
|
| Price: | Par
|
| Yield: | SOFR plus 92 bps
|
| Call: | Non-callable
|
| Cusip: | 02665WEE7
|
|
|
| 2026 fixed-rate notes
|
| Amount: | $500 million
|
| Issue: | Fixed-rate notes
|
| Maturity: | Jan. 12, 2026
|
| Coupon: | 4.75%
|
| Price: | 99.942
|
| Yield: | 4.771%
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Make-whole call anytime at Treasuries plus 15 bps
|
| Cusip: | 02665WEC1
|
|
|
| 2028 fixed-rate notes
|
| Amount: | $500 million
|
| Issue: | Fixed-rate notes
|
| Maturity: | Jan. 12, 2028
|
| Coupon: | 4.7%
|
| Price: | 99.802
|
| Yield: | 4.745%
|
| Spread: | Treasuries plus 103 bps
|
| Call: | Make-whole call anytime at Treasuries plus 20 bps
|
| Cusip: | 02665WED9
|
|
|
|
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