Harley‑Davidson Financial Services (HDFS) has announced tender offers to buy back up to $700 million of its 6.500% medium‑term notes due 2028 and $500 million of its 5.950% medium‑term notes due 2029. The offers will expire on November 21, 2025, with settlement scheduled for November 24 for standard offers and November 26 for those tendered under guaranteed delivery procedures.
The consideration for each note will equal the fixed spread plus the yield to maturity of the referenced U.S. Treasury security. The fixed spread is 35 basis points for the 2028 notes and 45 basis points for the 2029 notes, ensuring that investors receive a premium that reflects current Treasury yields while providing HDFS with a predictable cost of repurchase.
This move is part of HDFS’s broader strategy to transition to a capital‑light model and to strengthen the balance sheet of its parent company, Harley‑Davidson, Inc. By redeeming these notes, HDFS can reduce its outstanding debt by roughly $1.2 billion, freeing liquidity that can be deployed for debt reduction, share repurchases, or future growth initiatives. The tender offers follow the July 2025 partnership with KKR and PIMCO, which transferred a significant portion of HDFS’s credit risk and capital requirements and unlocked approximately $1.25 billion in cash for Harley‑Davidson.
CEO Jochen Zeitz said the company is “focused on delivering class‑leading returns for shareholders by reducing leverage and accelerating share buybacks.” CFO Jonathan R. Root added that the proceeds from the tender offers will be used to pay down debt and support the accelerated $1 billion share‑repurchase program announced last year, with $500 million earmarked for the second half of 2025.
Prior to the tender offers, HDFS’s total debt stood at about $3.5 billion, with the medium‑term notes representing a significant portion of that balance. The repurchase will bring the debt level closer to the target range set by management and improve debt‑to‑EBITDA ratios, enhancing the company’s credit profile and reducing interest expense in a high‑rate environment.
No immediate market reaction has been reported, but the tender offers are expected to be viewed positively by investors seeking a stronger balance sheet and more efficient capital allocation from Harley‑Davidson and its financial services arm.
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