Harley-Davidson (HOG) announced that HDFS has entered into a long-term strategic partnership with KKR, and PIMCO. This partnership transforms HDFS into a capital-light financing business through the sale of existing and future retail loans. HDFS will also sell 4.9% common equity interests to investment vehicles managed by KKR and PIMCO. HDFS has agreed to sell over $5 billion of existing gross consumer retail loan receivables and residual interests in securitized consumer loan receivables at a premium.
Harley-Davidson will retain control of HDFS. The company expects HDFS operating income to grow back toward pre-transaction levels over time.
Harley-Davidson plans to use the approximately $1.25 billion of cash unlocked through the transaction to reinvest to support demand-driven investments, reduce $450 million of HDI debt and return approximately $500 million to shareholders.
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May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.