HG bonds: Harley-Davidson returns with 5-year notes; terms

Harley-Davidson Financial Services Inc. today completed a $500 million offering of 3.05% five-year notes due Feb. 14, 2027, at T+130.

Proceeds will be used for general corporate purposes. Of note, the company has $400 million of 2.55% notes due in June.

The company's ratings profile has weakened over the last two years, leaving it at the lowest rung of the investment-grade tier.

Last March, S&P Global Ratings and Fitch revised their respective ratings to BBB-/BBB+ from BBB/A-, reflecting in part the parent company Harley-Davidson Inc.'s reduced retail footprint following a strategic revamp of the company's operations. The outlooks are stable at S&P Global Ratings and negative at Fitch.

Moody's in September 2020 cut its rating to Baa3 from Baa2, citing "long-term erosion in the company's core market for heavy-weight motorcycles in North America."

The ratings were BBB+/Baa1/A prior to the onset of the global pandemic.

Terms: