By Devika Patel
Knoxville, Tenn., Nov. 14 – American Honda Finance Corp. priced $1.75 billion of notes (A2/A+/) in four tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
There were floating-rate notes in two tranches and fixed-rate notes in two tranches.
The company sold $350 million of two-year floaters at Libor plus 15 basis points with a price of par.
There were $300 million of five-year floaters at Libor plus 47 bps with a price of par.
The company issued $600 million of 2% two-year notes at a spread of Treasuries plus 35 bps. These notes priced at 99.944 to yield 2.029%
There were $500 million of 2.6% five-year notes at a spread of Treasuries plus 53 bps. These notes priced at par to yield 2.6%.
Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and BofA Merrill Lynch are the bookrunners.
The U.S. arm of Honda Financial Services is based in Torrance, Calif.
| Issuer: | American Honda Finance Corp.
|
| Amount: | $1.75 billion
|
| Description: | Floating-rate notes, fixed-rate notes
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and BofA Merrill Lynch
|
| Lead managers: | BNP Paribas Securities Corp. and Morgan Stanley & Co. LLC
|
| Co-managers: | Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Lloyds Securities Inc., RBC Capital Markets Corp., TD Securities (USA) LLC, U.S. Bancorp Investments Inc., Loop Capital Markets LLC and Williams Capital Group LP
|
| Trade date: | Nov. 13
|
| Settlement date: | Nov. 16
|
| Ratings: | Moody’s: A2
|
| S&P: A+
|
|
|
| Two-year floaters
|
| Amount: | $350 million
|
| Maturity: | Nov. 13, 2019
|
| Coupon: | Libor plus 15 bps
|
| Price: | Par
|
|
|
| Five-year floaters
|
| Amount: | $300 million
|
| Maturity: | Nov. 16, 2022
|
| Coupon: | Libor plus 47 bps
|
| Price: | Par
|
|
|
| Two-year notes
|
| Amount: | $600 million
|
| Description: | Fixed-rate notes
|
| Maturity: | Nov. 13, 2019
|
| Coupon: | 2%
|
| Price: | 99.944
|
| Yield: | 2.029%
|
| Spread: | Treasuries plus 35 bps
|
| Call feature: | Greater of a make-whole call at Treasuries plus 7.5 bps and a par call
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Description: | Fixed-rate notes
|
| Maturity: | Nov. 16, 2022
|
| Coupon: | 2.6%
|
| Price: | Par
|
| Yield: | 2.6%
|
| Spread: | Treasuries plus 53 bps
|
| Call feature: | Greater of a make-whole call at Treasuries plus 10 bps and a par call
|
|
|
|
|
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