Published on 10/3/2018 in the Prospect News Investment Grade Daily.
New Issue: American Honda Finance prices $1.75 billion notes in three tranches
By Cristal Cody
Tupelo, Miss., Oct. 3 – American Honda Finance Corp. priced $1.75 billion of medium-term notes (A2/A+) in three tranches on Wednesday, according to FWP filings with the Securities and Exchange Commission.
The company sold $350 million of three-year floating-rate notes at par to yield Libor plus 29 basis points.
A $700 million tranche of 3.375% three-year fixed-rate notes priced at a spread of Treasuries plus 45 bps. The notes priced at 99.952 to yield 3.392%.
American Honda also sold $700 million of 3.625% five-year notes at 99.918 to yield 3.643%, or a Treasuries plus 62 bps spread.
Barclays, BNP Paribas Securities Corp., J.P. Morgan Securities LLC, BofA Merrill Lynch and MUFG were the bookrunners.
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 medium-term fixed- and floating-rate notes
|
| Bookrunners: | Barclays, BNP Paribas Securities Corp., J.P. Morgan Securities LLC, BofA Merrill Lynch and MUFG
|
| Trade date: | Oct. 3
|
| Settlement date: | Oct. 10
|
| Ratings: | Moody’s: A2
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $350 million
|
| Description: | Floating-rate notes
|
| Co-managers: | Lloyds Securities Inc., RBC Capital Markets, LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Loop Capital Markets LLC and Williams Capital Group, LP
|
| Maturity: | Dec. 10, 2021
|
| Coupon: | Libor plus 29 bps
|
| Price: | Par
|
| Yield: | Libor plus 29 bps
|
| Call feature: | None
|
|
|
| Three-year notes
|
| Amount: | $700 million
|
| Description: | Fixed-rate notes
|
| Maturity: | Dec. 10, 2021
|
| Co-managers: | Lloyds Securities Inc., RBC Capital Markets, LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Loop Capital Markets LLC and Williams Capital Group, LP
|
| Coupon: | 3.375%
|
| Price: | 99.952
|
| Yield: | 3.392%
|
| Spread: | Treasuries plus 45 bps
|
| Call feature: | Make-whole call any time before maturity at price equal to greater of par and Treasuries plus 10 bps
|
|
|
| Five-year notes
|
| Amount: | $700 million
|
| Description: | Fixed-rate notes
|
| Maturity: | Oct. 10, 2023
|
| Co-managers: | Lloyds Securities Inc., RBC Capital Markets, LLC, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.625%
|
| Price: | 99.918
|
| Yield: | 3.643%
|
| Spread: | Treasuries plus 62 bps
|
| Call feature: | Make-whole call any time before maturity at price equal to greater of par and Treasuries plus 15 bps
|
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