HG bonds: American Honda Financial returns with $1.75B in 3 parts; terms

American Honda Finance Corp. today completed a $1.75 billion, three-part offering at levels through initial whispers.

American Honda Finance tapped the U.S. bond market four times in 2020 and three times since the COVID-19 pandemic started to unfold, at incrementally lower funding costs. Most recently, in October, it completed a $1 billion, two-part offering, across floating-rate notes due Jan. 21, 2022, at L+12, and 0.40% two-year notes due Oct. 21, 2022, at T+27, or 0.415%.

In January, prior to the start of the pandemic, it placed a $1.75 billion, three-part offering across long-dated three-year floating-rate notes due May 2023 at L+37 and same-dated 1.95% fixed-rate notes at T+40, or 1.962%; along with 2.35% seven-year notes due Jan. 8, 2027, at T+63, or 2.363%.

Torrance, Calif.–based American Honda Finance operates as a financing arm and an ultimate subsidiary of Tokyo-based automaker Honda Motor Co. Ltd.

S&P Global Ratings and Moody's maintain negative ratings on their respective A–/A3 corporate profiles, following one-notch downgrades in the early months of the COVID-19 pandemic. Terms: