By Cristal Cody
Tupelo, Miss., June 24 – American Honda Finance Corp. priced a $1.75 billion three-tranche offering of medium-term notes (A2/A) on Monday, according to a market source.
A $500 million tranche of three-year floating-rate notes priced at Libor plus 54 basis points.
American Honda sold $750 million of 2.2% three-year fixed-rate notes at a spread of Treasuries plus 55 bps.
In the final tranche, $500 million of 2.4% five-year notes were priced at a Treasuries plus 70 bps spread.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and MUFG were the bookrunners.
Proceeds will be used to repay existing debt, to acquire retail loans or retail leases and to provide wholesale flooring and commercial loans or for other general corporate purposes.
American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.
| Issuer: | American Honda Finance Corp.
|
| Amount: | $1.75 billion
|
| Description: | Series A fixed- and floating-rate medium-term notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and MUFG
|
| Trade date: | June 24
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $500 million
|
| Description: | Floating-rate notes
|
| Maturity: | June 27, 2022
|
| Coupon: | Libor plus 54 bps
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Description: | Fixed-rate notes
|
| Maturity: | June 27, 2022
|
| Coupon: | 2.2%
|
| Spread: | Treasuries plus 55 bps
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Description: | Fixed-rate notes
|
| Maturity: | June 27, 2024
|
| Coupon: | 2.4%
|
| Spread: | Treasuries plus 70 bps
|
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