Harley‑Davidson Financial Services (HDFS), a subsidiary of Harley‑Davidson, Inc., will redeem all of its outstanding 6.50% Medium‑Term Notes due 2028 on December 12, 2025. The redemption will be funded from the company’s cash and cash equivalents and will pay the greater of 100 % of principal or the make‑whole price, plus accrued interest up to the redemption date.
Approximately $262.9 million of principal remains on the notes, so the cash outlay will be roughly that amount plus interest. The move reduces HDFS’s debt burden and is part of a broader capital‑light transformation that began with a partnership with KKR and PIMCO, which has already sold residual interests in securitized consumer‑loan receivables to unlock liquidity and lower leverage.
The redemption reflects HDFS’s confidence in its liquidity position and its intent to maintain a lean capital structure while supporting Harley‑Davidson and LiveWire motorcycle sales. Management described the transaction as a “transformative milestone” that will de‑risk the financial‑services arm and free up capital for future growth initiatives.
The decision to redeem the 2028 notes aligns with HDFS’s strategy to manage its debt maturity profile proactively. By paying early, the company avoids future interest expense and reduces refinancing risk, positioning it to take advantage of lower‑cost funding if market conditions improve. The action also signals to investors that HDFS is committed to a disciplined balance‑sheet approach as it continues to support the parent company’s core motorcycle business.
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