By Aleesia Forni
Virginia Beach, July 8 – American Honda Finance Corp. priced $1 billion of notes (A1/A+/) due 2017 in two parts on Tuesday, according to two separate filings with the Securities and Exchange Commission.
The deal included $350 million of three-year floating-rate notes sold at par to yield Libor plus 17 basis points.
A $650 billion part of 1.2% three-year notes was sold at a spread of Treasuries plus 30 bps, or 99.859 to yield 1.248%.
Pricing was tight of guidance.
Proceeds will be used for general corporate purposes.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and Morgan Stanley & Co. LLC were the joint bookrunners.
The U.S. arm of Honda Financial Services is based in Torrance, Calif.
| Issuer: | American Honda Finance Corp.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC
|
| Co-managers: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBS Securities Inc., SMBC Nikko Securities America, Inc., SG Americas Securities, LLC
|
| Trade date: | July 8
|
| Settlement date: | July 15
|
| Distribution: | SEC-registered
|
|
|
| Three-year floaters
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| Amount: | $350 million
|
| Maturity: | July 14, 2017
|
| Coupon: | Libor plus 17 bps
|
| Price: | Par
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| Yield: | Libor plus 17 bps
|
| Price talk: | Libor equivalent to three-year notes
|
|
|
| Three-year notes
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| Amount: | $650 billion
|
| Maturity: | July 14, 2017
|
| Coupon: | 1.2%
|
| Price: | 99.859
|
| Yield: | 1.248%
|
| Spread: | Treasuries plus 30 bps
|
| Price talk: | Treasuries plus 40 bps area
|
|
|
| Make-whole call: | Treasuries plus 5 bps
|
|
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