Harley-Davidson Financial Services, Inc. Announces It is Giving Notice of Full Redemption of its Outstanding 6.50% Medium-Term Notes due 2028

Rhea-AI Summary

Harley-Davidson Financial Services (NYSE:HOG) announced notice of full redemption of its outstanding 6.50% Medium-Term Notes due 2028, with a redemption date of December 12, 2025. The redemption price will be the greater of 100% of principal or the contract make-whole price, plus accrued interest to but not including the redemption date. Approximately $262.9 million principal amount of Notes is outstanding as of the announcement date. The company said it will fund the redemption from its cash and cash equivalents on hand. Citibank, N.A. is serving as trustee and paying agent; the formal Notice of Redemption is available from the trustee.

Positive

• $262.9M principal scheduled for redemption on Dec 12, 2025
• Redemption will be funded from cash and cash equivalents on hand
• Uses trustee Citibank, N.A. as paying agent for redemption processing

Negative

• Redemption will reduce liquidity by approximately $262.9M
• Final payout could exceed par due to the make-whole provision

News Market Reaction – HOG

+0.12%

+0.12% Session close to close

In the Dec 2 session, HOG gained 0.12%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement detailed the full redemption of Harley-Davidson Financial Services’ 6.50% Medium-T...

Analysis

This announcement detailed the full redemption of Harley-Davidson Financial Services’ 6.50% Medium-Term Notes due 2028, with about $262.9 million in principal to be repaid on December 12, 2025 using cash and cash equivalents. It follows a series of tender offers and a recent dividend declaration, underscoring continued balance sheet and capital allocation activity. With HOG trading well below its 52-week high, observers may focus on how these debt actions interact with broader financing strategy, insider activity, and future cash needs.

Key Figures

Coupon rate: 6.50% Redemption date: December 12, 2025 Outstanding principal: $262.9 million +5 more

8 metrics

Coupon rate 6.50% Medium-Term Notes due 2028 being fully redeemed

Redemption date December 12, 2025 Scheduled full redemption of 6.50% Notes due 2028

Outstanding principal $262.9 million Principal amount of Notes outstanding as of announcement

Redemption price floor 100% of principal Minimum redemption price per terms of Notes

Price change 2.61% HOG 24h move prior to or around announcement

52-week high $34.09 Pre-announcement 52-week high level

52-week low $20.45 Pre-announcement 52-week low level

Market cap $2,651,103,406 HOG equity value pre-announcement

Historical Context

5 past events · Latest: Dec 02 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Dec 02	Debt redemption	Neutral	+0.1%	Full redemption notice for remaining 6.50% 2028 notes using cash on hand.
Nov 25	Dividend declaration	Positive	+0.8%	Announced $0.18 per share Q4 2025 cash dividend and key dates.
Nov 24	Tender results	Positive	+2.4%	Reported results of cash tender offers for 2028 and 2029 notes.
Nov 21	Tender pricing	Positive	+5.3%	Set consideration levels and terms for note tender offers.
Nov 17	Tender launch	Positive	-3.3%	Launched cash tender offers for all outstanding 2028 and 2029 notes.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent financing-related announcements (tender offers, pricing, results, and this redemption) have more often coincided with positive or modestly positive price reactions, with one notable divergence on the tender offer launch.

Recent Company History

Over the last few weeks, Harley-Davidson and its finance arm have focused on capital structure and shareholder returns. HDFS launched, priced, and reported results of tender offers for its 6.500% 2028 and 5.950% 2029 notes in mid-to-late November 2025, with generally positive share reactions. The parent company also declared a $0.18 Q4 2025 dividend. Today’s notice of full redemption of remaining 6.50% 2028 notes continues this sequence of debt-focused actions funded from cash on hand.

Key Terms

medium-term notes, make-whole, principal amount, indenture, +1 more

5 terms

medium-term notes financial

"all of its outstanding 6.50% Medium-Term Notes due 2028 (the "Notes")."

Medium-term notes are debt securities issued by companies, banks or governments that promise to pay interest and return principal at a set date a few years out—typically longer than short-term bills but shorter than long-term bonds. For investors they act like staggered IOUs that provide predictable income and help diversify holdings, but they carry credit and interest-rate risk and can affect a portfolio’s cash flow and stability depending on the issuer’s creditworthiness and the note’s term.

make-whole financial

"the "make-whole" redemption price determined in accordance with the terms"

A make-whole provision is a clause in a loan or bond that requires the borrower to pay an extra amount when repaying the debt early, intended to compensate lenders for the interest payments they will miss. It matters to investors because it changes the effective return and liquidity of a bond—reducing the incentive for borrowers to refinance and protecting holders from losing future income, much like reimbursing the remainder of a subscription if someone cancels early.

principal amount financial

"greater of (i) 100% of the principal amount of the Notes"

The principal amount is the original sum of money that is borrowed, lent, or invested before any interest, fees, or returns are added. It matters to investors because interest charges, scheduled repayments, and total return are calculated from that base amount — think of it as the price tag on which future costs or gains are built. Knowing the principal helps you compare deals and predict cash flows and risk.

indenture financial

"the Trustee under the Indenture pursuant to which the Notes are issued"

An indenture is a legal agreement between a company that borrows money by issuing bonds and the people who buy those bonds. It explains the rules the company must follow, like paying back the money and keeping certain financial promises. This document helps both sides understand their rights and responsibilities.

paying agent financial

"Citibank, N.A., the Trustee ... is serving as the paying agent for the Notes."

A paying agent is a bank or company that helps deliver payments, like interest or dividends, to investors. It’s like a trusted middleman who makes sure everyone gets their money on time, so investors don’t have to handle the details themselves.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MILWAUKEE, Dec. 2, 2025 /PRNewswire/ -- Harley-Davidson Financial Services, Inc. (the "Company" or "HDFS"), a subsidiary of Harley-Davidson, Inc. (NYSE:HOG), today announced it is giving notice for the redemption on December 12, 2025 (the "Redemption Date") of all of its outstanding 6.50% Medium-Term Notes due 2028 (the "Notes"). The redemption price for the Notes is the greater of (i) 100% of the principal amount of the Notes and (ii) the "make-whole" redemption price determined in accordance with the terms of the Notes, plus, in either case, accrued and unpaid interest to but not including the Redemption Date.

As of the date hereof, approximately $262.9 million principal amount of Notes is outstanding. The Company will fund the redemption of the Notes from its cash and cash equivalents on hand.

Citibank, N.A., the Trustee under the Indenture pursuant to which the Notes are issued, is serving as the paying agent for the Notes. This press release is not the Notice of Redemption of the Notes. Copies of the Notice of Redemption may be obtained from the Trustee, 480 Washington Blvd., Jersey City, NJ  07310, Attn:  Agency & Trust – Harley-Davidson Financial Services, Inc.

About HDFS

Harley-Davidson Financial Services, Inc. is a Delaware corporation and a subsidiary of Harley-Davidson, Inc. It is engaged in the business of financing and servicing wholesale inventory receivables and retail consumer loans, primarily for the purchase of Harley-Davidson® and LiveWire® motorcycles. HDFS works with certain unaffiliated third parties to provide motorcycle insurance and voluntary protection products to motorcycle owners. It conducts business principally in the United States and Canada. The dealers of Harley-Davidson Motor Company as well as their retail customers in Europe, the Middle East and Africa, Asia Pacific and Latin America generally have access to financing through third party financial institutions, some of which have licensing agreements with HDFS.

# # # (HOG-OTHER)

 

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SOURCE Harley-Davidson, Inc.

FAQ

What did Harley-Davidson Financial Services announce about its 6.50% notes (HOG) on December 2, 2025?

It announced notice of full redemption of the 6.50% Medium-Term Notes due 2028, with redemption on December 12, 2025.

How much principal of the 6.50% notes is outstanding for HOG?

Approximately $262.9 million principal amount of the notes is outstanding as of the announcement date.

What redemption price will HOG pay for the 6.50% notes due 2028?

The redemption price is the greater of 100% of principal or the contract make-whole price, plus accrued interest to but not including the redemption date.

When is the redemption date for Harley-Davidson Financial Services' 6.50% notes (HOG)?

The redemption date is December 12, 2025.

How will Harley-Davidson fund the redemption of the 6.50% notes (HOG)?

The company said it will fund the redemption from its cash and cash equivalents on hand.

Where can investors obtain the Notice of Redemption for HOG's 6.50% notes?

Copies of the Notice of Redemption are available from the trustee, Citibank, N.A., Agency & Trust – Harley-Davidson Financial Services, at the address listed in the announcement.