Published on 9/7/2016 in the Prospect News Investment Grade Daily.
New Issue: American Honda details $1.75 billion three-tranche note offering
By Devika Patel
Knoxville, Tenn., Sept. 7 – American Honda Finance Corp. announced full terms for its $1.75 billion three-tranche sale of notes (A1/A+) in an FWP filing with the Securities and Exchange Commission. The notes priced on Tuesday.
American Honda Finance sold $250 million of five-year floating-rate notes with a coupon of Libor plus 61 basis points.
The company priced $1 billion of 1.7% five-year fixed-rate notes at a spread of 63 bps over Treasuries.
In the final tranche, American Honda Finance sold $500 million of 2.3% 10-year notes at 80 bps over Treasuries.
The bookrunners were BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC.
American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.
| Issuer: | American Honda Finance Corp.
|
| Amount: | $1.75 billion
|
| Securities: | Notes
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC
|
| Co-managers: | BNP Paribas Securities Corp., RBC Capital Markets Corp., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., CastleOak Securities LP, Loop Capital Markets LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co. Inc. and Williams Capital Group LP
|
| Trade date: | Sept. 6
|
| Settlement date: | Sept. 9
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
|
|
| Five-year floaters
|
| Amount: | $250 million
|
| Maturity: | Sept. 9, 2021
|
| Coupon: | Libor plus 61 bps
|
| Price: | Par
|
| Yield: | Libor plus 61 bps
|
| Call: | Non-callable
|
|
|
| Five-year notes
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| Amount: | $1 billion
|
| Maturity: | Sept. 9, 2021
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| Coupon: | 1.7%
|
| Price: | 99.8
|
| Yield: | 1.742%
|
| Spread: | Treasuries plus 63 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps
|
|
|
| Ten-year notes
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| Amount: | $500 million
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| Maturity: | Sept. 9, 2026
|
| Coupon: | 2.3%
|
| Price: | 99.698
|
| Yield: | 2.334%
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps
|
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