According to a person with knowledge of the transaction, the Japanese company will be offering $2.75 billion of U.S. dollar-denominated bonds in three parts as soon as today.
The person, who asked not to be identified because terms aren’t set, said Honda Finance Corp., the Japanese automaker’s U.S. finance unit, may sell $1.75 billion of three-year debt. The debt is comprised of $1 billion of fixed-rate notes yielding 65 basis points more than similar-maturity Treasuries and $750 million of floating-rate securities paying 50 basis points more than the three-month London Interbank offered rate. It may also issue $1 billion of five-year, fixed-rate debt at a relative yield of 85 basis points.
Barclays Plc and Deutsche Bank AG are managing the offering for the Tokyo-based company and the bonds may be rated A1 by Moody’s Investors Service, the person said.
Honda’s $500 million of 2.6 percent debentures due September 2016 traded at 103.63 cents on the dollar to yield 1.36 percent on Sept. 17, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.