Harley‑Davidson Financial Services, Inc. (HDFS), a subsidiary of Harley‑Davidson, Inc., will redeem all of its outstanding €700 million 5.125 % guaranteed notes due 2026 on March 15 2026. The redemption will be funded from HDFS’s cash and cash equivalents and will result in the cancellation of the notes on the Euronext Dublin exchange, removing a significant debt obligation from the subsidiary’s balance sheet and reducing future interest expense.
Prior to the redemption, HDFS carried a substantial debt load that contributed to its interest expense. By retiring the €700 million notes, HDFS will lower its interest burden and improve its debt‑to‑equity profile, aligning with Harley‑Davidson’s broader strategy of strengthening the financial position of its subsidiaries. The move also supports the company’s goal of operating a more capital‑light model, a shift that has been accelerated by the July 2025 partnership with KKR and PIMCO, which unlocked cash and de‑risked the HDFS business.
HDFS will fund the redemption from its own cash and cash equivalents, reflecting a healthy liquidity position. At the end of 2025, Harley‑Davidson, Inc. reported cash and cash equivalents of $3.1 billion, providing ample resources to support the repayment without impacting other capital‑allocation priorities.
Artie Starrs, President and CEO of Harley‑Davidson, said in a February 10 2026 earnings release: "As we close out a challenging year for the Company, we are taking deliberate actions to stabilize the business, restore dealer confidence, and align wholesale activity with retail demand. While near‑term results reflect these actions, the progress we are seeing reinforces our confidence in the reset underway and our ability to rebuild Harley‑Davidson's long‑term earnings and cash‑flow power." He added, "With an iconic brand, a deeply loyal rider community, and a dealer network unlike any other, we believe Harley‑Davidson is well positioned as we chart a clear path forward."
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