By Aleesia Forni
Virginia Beach, July 23 – Harley-Davidson Inc. priced $750 million of senior notes (A3/A-/A) in tranches due 2025 and 2045 on Thursday, according to a market source.
The Milwaukee-based company sold a $450 million issue of 3.5% notes due 2025. The notes priced at 99.449 to yield 3.566%, or Treasuries plus 130 basis points.
A $300 million 4.625% note due 2045 priced at 99.774 to yield 4.639%, or Treasuries plus 165 bps.
Both tranches sold at the tight end of talk.
Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC are the bookrunners.
Proceeds will be used to fund repurchases of the company’s common stock from time to time under Harley-Davidson’s share repurchase programs.
The Milwaukee-based company designs, manufactures and sells motorcycles.
| Issuer: | Harley-Davidson Inc.
|
| Issue: | Senior notes
|
| Amount: | $750 million
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Trade date: | July 23
|
| Settlement date: | July 28
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: A-
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $450 million
|
| Maturity: | July 28, 2025
|
| Coupon: | 3.5%
|
| Price: | 99.449
|
| Yield: | 3.566%
|
| Spread: | Treasuries plus 130 bps
|
| Price guidance: | Treasuries plus 135 bps area, tightened from Treasuries plus 140 bps area
|
|
|
| 30-year bonds
|
| Amount: | $300 million
|
| Maturity: | July 28, 2045
|
| Coupon: | 4.625%
|
| Price: | 99.774
|
| Yield: | 4.639%
|
| Spread: | Treasuries plus 165 bps
|
| Price guidance: | Treasuries plus 170 bps area, tightened from Treasuries plus 175 bps area
|
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