Harley confirms share buy-back program debt-offer detailsFollowing release of its second quarter 2015 financial reports Harley-Davidson has moved quickly to file pricing of a public offering of $750 million aggregate principal amount of fixed rate senior notes with the SEC (Securities and Exchange Commission).
The money being raised is to fund the third quarter tranche of its ongoing share buy-back program.
The debt placement consists of $450 million of senior notes that mature in 2025 bearing a 3.500% interest rate and a further $300 million of senior notes that mature in 2045 at 4.625%.
Harley-Davidson says that it expects that it will receive approximately $740.9 million of net proceeds from the offering after deducting underwriting discounts, commissions and estimated expenses of the offering. Harley-Davidson intends to use the net proceeds from the offering to fund repurchases of Harley-Davidson common stock from time to time through the remainder of 2015.
Citigroup Global Markets Inc., Goldman, Sachs & Co. and J.P. Morgan Securities LLC are serving as joint book-running managers for the offering.