By Aleesia Forni
Virginia Beach, March 10 – American Honda Finance Corp. priced $1.25 billion of senior notes (A1/A+) in three- and five-year tranches on Tuesday, according to a market source.
There was $850 million of 1.5% notes due 2018 sold at 99.866 to yield 1.546%, or 47 basis points over Treasuries.
The notes sold at the tight end of the 47 bps to 49 bps guidance. Initial talk was set in the low-50 bps area over Treasuries.
A second tranche was a $400 million issue of 2.15% notes due 2020 priced with a spread of 58 bps. Pricing was at 99.821 to yield 2.188%.
Guidance was set in the 60 bps area over Treasuries after having tightened from initial price thoughts set in the mid-60 bps area over Treasuries.
Proceeds will be used for general corporate purposes.
The bookrunners were BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Societe Generale.
The U.S. arm of Honda Financial Services is based in Torrance, Calif.
| Issuer: | American Honda Finance
|
| Issue: | Senior notes
|
| Amount: | $1.25 billion
|
| Bookrunners: | BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Societe Generale
|
| Trade date: | March 10
|
| Ratings: | Moody’s: A1
|
| Standard & Poor’s: A+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $850 million
|
| Maturity: | March 13, 2018
|
| Coupon: | 1.5%
|
| Price: | 99.866
|
| Yield: | 1.546%
|
| Spread: | 47 bps over Treasuries
|
| Price talk: | 47 bps to 49 bps over Treasuries, tightened from low 50 bps area
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | March 13, 2020
|
| Coupon: | 2.15%
|
| Price: | 99.821
|
| Yield: | 2.188%
|
| Spread: | 58 bps over Treasuries
|
| Price talk: | 60 bps area over Treasuries, tightened from mid-60 bps area
|
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