New Issue: American Honda Finance sells $1.65 billion of two-, five-year notes

By Aleesia Forni

Virginia Beach, Sept. 21 – American Honda Finance Corp. sold $1.65 billion of notes (A1/A+) in two parts on Monday, according to two FWP filings with the Securities and Exchange Commission.

There was $650 million of two-year floating-rate notes that sold at par to yield Libor plus 45 basis points.

A $1 billion 2.45% five-year note sold at 99.935 to yield 2.464%, or Treasuries plus 98 bps.

Both tranches sold at the tight end of guidance.

BofA Merrill Lynch, Barclays, Deutsche Bank Securities and SMBC Nikko were the bookrunners.

The U.S. arm of Honda Financial Services is based in Torrance, Calif.

Issuer:	American Honda Finance Corp.
Issue:	Senior notes
Amount:	$1.65 billion
Bookrunners:	BofA Merrill Lynch, Barclays, Deutsche Bank Securities, SMBC Nikko
Co-managers:	Lloyds Securities Inc., RBC Capital Markets, LLC, SG Americas Securities, LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc.
Trade date:	Sept. 21
Settlement date:	Sept. 24
Ratings:	Moody’s: A1
	Standard & Poor’s: A+
Distribution:	SEC registered
Two-year notes
Amount:	$650 million
Maturity:	Sept. 24, 2017
Coupon:	Libor plus 45 bps
Price:	Par
Yield:	Libor plus 45 bps
Price guidance:	Libor plus 50 bps area, tightened from Libor plus low-50 bps area
Five-year notes
Amount:	$1 billion
Maturity:	Sept. 24, 2020
Coupon:	2.45%
Price:	99.935
Yield:	2.464%
Spread:	Treasuries plus 98 bps
Price guidance:	Treasuries plus 100 bps area, tightened from Treasuries plus 110 bps area
Make-whole call:	Treasuries plus 15 bps

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