Harley-Davidson Plans To Sell $700 Million Of Bonds

plans to sell $700 million of bonds backed by loans for motorcycles and eligible for the Fed’s Term Asset- Backed Securities Loan Facility. Term Asset-Backed Securities Loan Facility (TALF) is the name of a program created by the US Federal Reserve (the Fed) to support the issuance of asset-backed securities (ABS) collateralized by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration (SBA). Other automotive companies selling securities backed by consumer loans include Honda, Chrysler Financial and Ford Motor Co.

17 Responses to “Harley-Davidson Plans To Sell $700 Million Of Bonds”

  1. 1 Jul 7th, 2009 at 5:57 am

    How is this going to work?

    Defaulted loans because the job to make the payments disappears. Stock market crashes. Bonds are sold to leverage new loans.

    Michael Milken sent to prison for junk bonds. Politicians have immunity. Hmmmm.

  2. 2 BadMonkeyMW Jul 7th, 2009 at 8:53 am

    Sounds like nothing more than a house of cards.

  3. 3 Jul 7th, 2009 at 10:20 am

    Oh boy … here we go again!

    Over & Out,


  4. 4 J Jul 7th, 2009 at 2:04 pm

    Utterly absurd that HD is in any way, shape, or form eligible for the TALF program; This is taxpayer bailout of an incompetent management group, period- HD had NO PROBLEMS selling their vehicles in the market, other than the group of Goldman-Sachs wannabes who have run HD for the past 15+ years, who have screwed up a wonderful long-term business model in exchange for short-term personal enrichment.

    Hate to say it, but let HD fail, and whatever rises from the ashes will be FAR better than this current mess;


  5. 5 Jul 7th, 2009 at 2:19 pm

    Oh, lest we forget, Berkshire Hathaway (Warren Buffett) loaned H-D 600 million at 15 per cent.

    Warren Buffet gets paid back 690 million.

    Where is the 10 million going? Brokerage commissions?

  6. 6 FUJI Jul 7th, 2009 at 3:36 pm

    “The market is telling Harley-Davidson that their lending that had worked a couple of years ago is no longer working

    Now Harley is saying let TALF take care of it and we will survive. TALF = you the tax payer

  7. 7 Tim Jul 7th, 2009 at 5:26 pm

    Ok First the Banks then the Auto Industry now Harley will be under the Government Direction. Can you say Socialism. Looks like the Looters are winning. (If you do not not know what that means May I suggest Atlas Shrugged by Ian /Rand) Damn sorry to see HD go away. In 5 years Gm Chrysler and now HD will not exist as we have known them up to now. Farewell my old friends.

  8. 8 Busfreak Jul 7th, 2009 at 7:02 pm

    Hang tight, we got another stimulus package coming and free insurance for all the employees.

  9. 9 Pabst Blue Rigid Jul 8th, 2009 at 10:46 am

    when will y’all stop being such a bunch of haters on Harley? without them, there would be NO aftermarket, NO S & S motors, etc….they started the whole dam thing!


    again, stop the negativity aimed at the HDMOCO

    As a OEM dealer since PRE-AMF, we’ve seen the good, bad, the ugly….and we’ve hung in there –

    “that’s the AMERICAN SPIRIT”

  10. 10 Jul 8th, 2009 at 11:40 am

    Pabst Blue Rigid,

    How’s that corporate lookin’ store lookin’ that you had to build?

  11. 11 FUJI Jul 8th, 2009 at 3:38 pm

    Pabst Blue Rigid
    I guess we would be riding Beemers just because we like to ride.

  12. 12 FUJI Jul 8th, 2009 at 4:59 pm

    Pabst Blue Rigid
    This is a country based on free enterprise, innovation, and capitalism. When a company is failing, it should be allowed to fail so that a new company can surface as a leader. Competition is what drives the market. Success of the up and coming company is fulfillment of the American Dream.
    Not the illussion or myth that if you created something one should get a free pass.

  13. 13 David Jul 8th, 2009 at 9:59 pm

    Yeah I’ll go with FUJI !!! He is 100% right!!! I think I’ll buy a Beemer and ride more and forget the loud pipes. You know it just wears on a guy after awhile…. David

  14. 14 Conrad Nicklus Jul 9th, 2009 at 1:38 am

    Pabst Blue Rigid ,

    Actually Indian started the whole”dam thing” as you say. But good try, typical Harley dealer thinking their shit dont stink.

    Maybe next time, before you fire off at everyone on here and brag about how long you have been with Harley, you will think about how many dislike Harley and could care less if they were here or not. If it wouldnt have been them it would have been someone else. Quit your bitching and go ride your Sportster, Cheif.

    Anyways, Mike, Berkshire has “claimed” to be giving a majority of the earnings back into funds which will allow Buffet to aquire another corporation. The article I read failed to mention the exact corporation but for 90 or so million I would say its a fairly large company, unless it will be Harley. In that case God only knows what Buffet would have to pay to buy them out.

  15. 15 J Jul 9th, 2009 at 11:57 am

    Conrad- yep, you’re reading between the lines quite well- Buffet recognizes that current HD management will eventually drive the company into the ground, and he’s positioned to pick up the pieces in the scrap pile;

    Classic Berkshire/Charlie Munder move of positioning with debt leverage and unltimately aquiring a brand name for pennies on the dollar, rather than taking an equity position and trying to fix the problems now…..

  16. 16 Jul 9th, 2009 at 12:55 pm


    Exactly correct! Buffet didn’t make his billions because he is stupid. Nor has he ever claimed to be in business because he is a humanitarian! Buffet could make HD a viable company again if he were at the helm. Just my opinion.

    Over & Out,


  17. 17 FUJI Jul 9th, 2009 at 2:58 pm

    Mike Greenwald
    Jul 7th, 2009 at 2:19 pm
    Oh, lest we forget, Berkshire Hathaway (Warren Buffett) loaned H-D 600 million at 15 per cent.
    Warren Buffet gets paid back 690 million.

    I didn’t take the time to crunch the numbers so one can double that number for Davis Selected Advisors are in equal measure as Buffet. 1380 MILLION ! WOW !

    On top of that they did a years extension on a note for 500 million payable in early 2010 and those fees will with out a doubt take a sizable increase to pay off. Who will end up owning what if Hog doesn’t recover fast enough

    It’s all over my head.

    PBR. Sorry dude but the man said put it where the sun doesn’t shine and just ride and that may just happen. Mr Ziemer is out riding with his buddy’s

    The best part of the motorcycle industry are those creative thinkers and builders who have the creativity to keep the sport or love alive.

    Live on. I commend them all.

    I personally can’t hit my ass with a monkey wrench so I appreciate the tallent.


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