New Issue: American Honda Finance sells $1 billion of three-year fixed-, floating-rate notes

By Aleesia Forni

New York, Feb. 18 – American Honda Finance Corp. sold $1 billion of medium-term notes, series A, (A1/A+) in two parts on Thursday, according to two FWP filings with the Securities and Exchange Commission.

There was $700 million of 1.7% three-year fixed-rate notes priced at 99.98 to yield 1.707%, or Treasuries plus 83 basis points.

The notes were talked in the 85 bps area over Treasuries.

And $300 million of floating-rate notes sold at par to yield Libor plus 82.5 bps.

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:	Medium-term notes, series A
Amount:	$1 billion
Bookrunners:	Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, SG Americas Securities, LLC
Co-managers:	BNP Paribas Securities Corp., Mizuho Securities USA Inc., RBC Capital Markets, LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc.
Trade date:	Feb. 18
Settlement date:	Feb. 23
Ratings:	Moody’s: A1
	Standard & Poor’s: A+
Distribution:	SEC registered
Three-year notes
Amount:	$700 million
Maturity:	Feb. 22, 2019
Coupon:	1.7%
Price:	99.98
Yield:	1.707%
Spread:	Treasuries plus 83 bps
Price guidance:	Treasuries plus 85 bps area
Make-whole call:	Treasuries plus 15 bps
Three-year floaters
Amount:	$300 million
Maturity:	Feb. 22, 2019
Coupon:	Libor plus 82.5 bps
Price:	Par
Yield:	Libor plus 82.5 bps
Price guidance:	Libor equivalent to fixed-rate notes

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