- Repurchase offers and early redemptions affect bonds worth more than $1 billion.
- Early redemption of 6.50 percent notes on December 12, 2025.
- Ongoing dividend of $0.18 per share confirmed.
Harley Davidson is visibly working on restructuring its financial structure at the beginning of the fourth quarter of 2025. After the financial division HDFS launched several buyback programs, it was followed shortly thereafter by the announcement that the remaining 6.50 percent medium-term notes maturing in 2028 would also be redeemed early. The steps are being taken using the company’s own liquid funds and are intended to give the group additional financial leeway.
Early repayment and repurchases of high-yield bonds
HDFS announced that it would redeem all outstanding 6.50 percent medium-term notes totaling approximately $262.9 million on December 12, 2025. The repayment amount corresponds to either the nominal value or a make-whole price determined in accordance with the bond terms, plus interest accrued up to the cut-off date. Citibank is acting as the paying agent for the transaction.
Repurchase offers for two additional bonds maturing in 2028 and 2029 had already been launched in advance. Both securities carry interest rates between six and six and a half percent. Investors returned over $792 million, with an additional approximately $8 million in guaranteed delivery. These debts will be completely removed from the books upon completion of the transaction.
Financial situation and significance for the Group
The company is financing the repayments from its own liquid funds. Internal data indicates that liquidity exceeds short-term liabilities and that existing cash flows should sufficiently cover interest payments. From a Group perspective, this step represents a significant relief, as it reduces high-interest old debts and lowers interest expenses in the long term.
The measures directly affect the financial arm HDFS, which is responsible for dealer financing, end-customer loans, and leasing contracts in North America. This area forms the stable foundation of the Group and is crucial to the functioning of the entire sales network. The restructuring of the financial base should therefore be seen as a conscious strategic preparation for the coming years.
Classification of the current corporate strategy
Observers see the latest measures as a sign that Harley Davidson is realigning its position. The recently appointed CEO, Artie Starrs, is considered a financial expert and is currently said to be conducting a comprehensive review. In several regions, budgets have already been significantly reduced, and dealer programs and marketing activities have been reevaluated or scaled back.
In addition to the financial restructuring, there are further indications of a strategic realignment. The discussion about a stronger return to the Bar and Shield logo or the consideration of working more intensively at the historic location on Juneau Avenue are seen as additional signals. These steps could also involve changes in working structures, such as a reduction in the proportion of home offices in the US.
Dividend policy and outlook
In parallel with the buybacks and terminations, the Board of Directors confirmed a quarterly cash dividend of US$0.18 per share for the fourth quarter of 2025. The payment is scheduled for December 22. The fact that the dividend will remain unchanged is seen as an indication of the stable liquidity situation.
Several factors indicate that the Group is realigning its strategic course. The combination of debt reduction, budget discipline, and a rather cautious communication policy suggests a longer-term plan that has not yet been fully disclosed. Far-reaching developments are therefore expected for 2026, which could affect both the financial base and the brand strategy.
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