By Aleesia Forni
Virginia Beach, July 10 – American Honda Finance Corp. gave details of its recent $1.25 billion offering of senior notes (A1/A+) priced in two parts, according to two FWP filings with the Securities and Exchange Commission.
A $750 million tranche of 1.6% three-year notes sold with a spread of Treasuries plus 70 basis points. The notes priced at 99.927 to yield 1.625%.
A $500 million three-year floating-rate tranche sold at par with a coupon of Libor plus 46 bps.
Both tranches sold at the tight end of price guidance.
Proceeds will be used for general corporate purposes.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities and Wells Fargo Securities LLC were the bookrunners.
The U.S. arm of Honda Financial Services is based in Torrance, Calif.
| Issuer: | American Honda Finance Corp.
|
| Issue: | Senior notes, series A
|
| Amount: | $1.25 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities, Wells Fargo Securities LLC
|
| Co-managers: | BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc.
|
| Trade date: | July 9
|
| Settlement date: | July 14
|
| Ratings: | Moody’s: A1
|
| Standard & Poor’s: A+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Maturity: | July 13, 2018
|
| Coupon: | 1.6%
|
| Price: | 99.927
|
| Yield: | 1.625%
|
| Spread: | Treasuries plus 70 bps
|
| Price guidance: | Treasuries plus 70 bps to 73 bps area
|
| Make-whole call: | Treasuries plus 10 bps
|
|
|
| Three-year floaters
|
| Amount: | $500 million
|
| Maturity: | July 13, 2018
|
| Coupon: | Libor plus 46 bps
|
| Price: | Par
|
| Yield: | Libor plus 46 bps
|
| Price guidance: | Libor plus 46 bps to 49 bps
|
|
|
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