Harley-Davidson moves to create additional financial services funding
February 6, 2009
Filed under Features
Harley-Davidson priced an offering of $600 million of its senior unsecured notes to help fund Harley-Davidson Financial Services (HDFS), reported the company. Securing additional funding for HDFS is part of the company’s three-part strategy to address the current economic challenges.
Davis Selected Advisers, L.P., a long-time investor in Harley-Davidson, and Berkshire Hathaway will purchase equal portions of the aggregate principal amount of the notes. The offering is being made under the company’s existing shelf registration for public offerings of securities, including debt. The notes will be due in 2014 and will bear interest at a rate of 15 percent per year.
“This offering represents an important next step in executing our stated strategy for funding the lending activities of HDFS,” Tom Bergmann, H-D CFO and interim president of HDFS, said in a press release.