Harley-Davidson Completes The Sale Of Its Residual Interests In Securitized Consumer Loan Receivables; Strategic Partnership With KKR And PIMCO To Transform Harley-Davidson Financial Services Into A Capital-Light And Derisked Business That Will Continue To Originate And Service Both New And Existing Retail Loans

Author: Benzinga Newsdesk | August 25, 2025 04:09pm

Represents an important step in the recently announced strategic partnership with KKR and PIMCO to transform Harley-Davidson Financial Services (HDFS) into a capital-light and derisked business that will continue to originate and service both new and existing retail loans

Generates proceeds of more than $230 million through sale of residual interests in certain securitized consumer loan receivables at a premium to par

Residual interests sold represented aggregate retail loan receivables of approximately $2 billion and related debt of approximately $1.8 billion at June 30, 2025

MILWAUKEE, Aug. 25, 2025 /PRNewswire/ -- Harley-Davidson, Inc. (the "Company" or "Harley-Davidson") (NYSE:HOG) today announced the completion of the sale of its residual interests in securitized consumer loan receivables, marking a milestone in its strategic partnership with KKR, a leading global investment firm, and PIMCO, a global leader in active fixed income with expertise across public and private markets. This strategic partnership transforms HDFS into a capital-light financing business through the sale of existing and future retail loans while maintaining its strategic value to Harley-Davidson, its dealers, customers and investors.

Strategic Partnership Transaction Update

• HDFS has sold 95% of the residual interests in certain securitized consumer loan receivables to investment vehicles managed by KKR and PIMCO at a premium to par value for gross proceeds of more than $230 million.
• Residual interests sold represented aggregate retail loan receivables of approximately $2 billion and related debt of approximately $1.8 billion at June 30, 2025.
• HDFS is targeting completion of the remaining aspects of the transaction, including the sale of 4.9% common equity interests at an agreed $1.8 billion valuation to each partner, and the existing consumer retail loan receivables by the end of October. Upon completion of the transaction, investment vehicles managed by KKR and PIMCO will begin acquiring new consumer retail loan receivables originated by HDFS.

Management Commentary

"Since we announced our strategic partnership with KKR and PIMCO earlier this quarter, we have made excellent progress on our path to completing the transaction, and we are pleased to have achieved this major milestone with our partners so quickly," said Harley-Davidson Chairman, President, and CEO Jochen Zeitz. "Completing this step eliminates approximately $2 billion in variable interest entities and $1.8 billion of debt from our balance sheet, while generating more than $230 million of proceeds that we plan to use to support the capital allocation priorities we set forth when we announced the transaction. We are on track to complete the transaction as planned and begin the next phase of our partnership, all while continuing to deliver outstanding service levels for our dealers and customers. This transaction delivers benefits to all of Harley-Davidson's stakeholders and marks the beginning of an exciting new chapter for HDFS."

Posted In: HOG