By Andrea Heisinger
New York, Feb. 21 - American Honda Finance Corp. sold $1.75 billion of notes (A1/A+/A) in two tranches on Tuesday, a market source away from the deal said.
A $1 billion tranche of 1.45% three-year notes priced at 99.947 to yield 1.468% with a spread of Treasuries plus 103 basis points. The paper priced at the low end of guidance in the 105 bps area.
There was also a $750 million tranche of 2.125% five-year notes sold at 99.995 to yield 2.126% with a spread of 123 bps over Treasuries. The tranche also sold at the low end of talk in the 125 bps area.
Both tranches are non-callable. The deal was priced under Rule 144A and Regulation S.
Bookrunners were Barclays Capital Inc., J.P. Morgan Securities LLC and RBS Securities Inc.
The U.S. financing arm of Honda Financial Services is based in Torrance, Calif.
| Issuer: | American Honda Finance Corp.
|
| Issue: | Notes
|
| Amount: | $1.75 billion
|
| Bookrunners: | Barclays Capital Inc., J.P. Morgan Securities LLC, RBS Securities Inc.
|
| Distribution: | Rule 144A, Regulation S
|
| Trade date: | Feb. 21
|
| Settlement date: | Feb. 28
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
| Fitch: A
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 27, 2015
|
| Coupon: | 1.45%
|
| Price: | 99.947
|
| Yield: | 1.468%
|
| Spread: | Treasuries plus 103 bps
|
| Call: | Non-callable
|
| Price talk: | 105 bps area
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 28, 2017
|
| Coupon: | 2.125%
|
| Price: | 99.995
|
| Yield: | 2.126%
|
| Spread: | Treasuries plus 123 bps
|
| Call: | Non-callable
|
| Price talk: | 125 bps area
|
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