By Aleesia Forni
Virginia Beach, Oct. 3 - American Honda Finance Corp. priced $2.75 billion of notes (A1) in three parts on Thursday, according to an informed source.
The deal included $750 million of three-year floating-rate notes sold at par to yield Libor plus 50 basis points.
A $1 billion part of 1.125% three-year notes was sold at a spread of Treasuries plus 65 bps, or 99.652 to yield 1.244%.
Finally, $1 billion of 2.125% five-year notes priced at Treasuries plus 85 bps.
Pricing was at 99.614 to yield 2.207%.
The fixed-rate tranches sold at the tight end of talk.
Proceeds will be used for general corporate purposes.
Barclays, BofA Merrill Lynch and Deutsche Bank Securities Inc. 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: | $2.75 billion
|
| Joint bookrunners: | Barclays, BofA Merrill Lynch, Deutsche Bank Securities Inc.
|
| Trade date: | Oct. 3
|
| Settlement date: | Oct. 8
|
| Ratings: | Moody's: A1
|
|
|
| Floaters due 2016
|
| Amount: | $750 million
|
| Maturity: | 2016
|
| Coupon: | Libor plus 50 bps
|
| Price: | Par
|
| Yield: | Libor plus 50 bps
|
|
|
| Notes due 2016
|
| Amount: | $1 billion
|
| Maturity: | 2016
|
| Coupon: | 1.125%
|
| Price: | 99.652
|
| Yield: | 1.244%
|
| Spread: | Treasuries plus 65 bps
|
| Price talk: | Treasuries plus 70 bps area
|
|
|
| Notes due 2018
|
| Amount: | $1 billion
|
| Maturity: | 2018
|
| Coupon: | 2.125%
|
| Price: | 99.614
|
| Yield: | 2.207%
|
| Spread: | Treasuries plus 85 bps
|
| Price talk: | Treasuries plus 90 bps area
|
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