By Andrea Heisinger
New York, Sept. 13 - American Honda Finance Corp. priced $1.4 billion of notes (A1/A+/) in three tranches on Tuesday, a source close to the trade said.
Full terms were not available at press time.
The $400 million of 1.85% three-year notes was sold at a spread of Treasuries plus 153 basis points. They were sold at the low end of guidance in the 155 bps area.
A $500 million tranche of 2.6% five-year notes priced to yield 173 bps over Treasuries. The notes were priced at the tight end of talk in the 175 bps area.
The third part was $500 million of 3.8% 10-year notes sold at Treasuries plus 185 bps. The tranche sold at the low end of talk in the 185 bps to 190 bps range.
The bonds were sold under Rule 144A and Regulation S.
Bookrunners were Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc. and Deutsche Bank Securities Inc.
Proceeds will be used to repay borrowings related to finance operations and for general corporate purposes.
American Honda last priced notes in a $450 million sale of floating-rate notes due 2012 on Feb. 23, 2011.
The U.S. financing arm of Honda Financial Services is based in Torrance, Calif.
| Issuer: | American Honda Finance Corp.
|
| Issue: | Notes
|
| Amount: | $1.4 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc.
|
| Distribution: | Rule 144A
|
| Trade date: | Sept. 13
|
| Settlement date: | Sept. 20
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
|
|
| Three-year notes
|
| Amount: | $400 million
|
| Maturity: | 2014
|
| Coupon: | 1.85%
|
| Spread: | Treasuries plus 153 bps
|
| Price talk: | 155 bps area
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | 2016
|
| Coupon: | 2.6%
|
| Spread: | Treasuries plus 173 bps
|
| Price talk: | 175 bps area
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | 2021
|
| Coupon: | 3.8%
|
| Spread: | Treasuries plus 185 bps
|
| Price talk: | 185 to 190 bps
|
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