Published on 11/16/2016 in the Prospect News Investment Grade Daily.
New Issue: American Honda Finance sells $1.2 billion of two-year fixed-, floating-rate notes
By Cristal Cody
Eureka Springs, Ark., Nov. 16 – American Honda Finance Corp. priced $1.2 billion of two-year fixed- and floating-rate notes (A1/A+) on Wednesday, according to FWP filings with the Securities and Exchange Commission.
The company sold $750 million of floating-rate notes at par to yield Libor plus 28 basis points. The interest rate will initially reset on Feb. 9, 2017 and will reset on each interest payment date.
American Honda Finance also priced $450 million of 1.5% notes due Nov. 19, 2018 at 99.959 to yield 1.521%, or 52 bps over Treasuries.
The bookrunners were BNP Paribas Securities Corp., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.
American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.
| Issuer: | American Honda Finance Corp.
|
| Amount: | $1.2 billion
|
| Description: | Fixed- and floating-rate notes
|
| Bookrunners: | BNP Paribas Securities Corp., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Co-managers: | HSBC Securities (USA) Inc., Lloyds Securities Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc.
|
| Trade date: | Nov. 16
|
| Settlement date: | Nov. 21
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $750 million
|
| Maturity: | Nov. 19, 2018
|
| Coupon: | Libor plus 28 bps; resets Feb. 9, 2017 and each interest payment date thereafter
|
| Price: | Par
|
| Yield: | Libor plus 28 bps
|
|
|
| Two-year notes
|
| Amount: | $450 million
|
| Maturity: | Nov. 19, 2018
|
| Coupon: | 1.5%
|
| Price: | 99.959
|
| Yield: | 1.521%
|
| Spread: | Treasuries plus 52 bps
|
| Make-whole call: | Greater of par and Treasuries plus 10 bps
|
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