Harley-Davidson Loan Securization Loss

Harley-Davidson just took a loss on $486M Loan Securitization and is getting a new $300 million credit line. Harley-Davidson Inc. states that its financial services division has securitized $486 million in retail motorcycle loans for an estimated loss of between $4.1 million and $5.4 million, according to a regulatory filing. Out of a total transaction amount of $540 million, Harley-Davidson Financial Services Inc. retained notes for $54 million in retail motorcycle loans.  Harley-Davidson said that it has entered into a new $300 million credit facility, which will provide additional liquidity to its unsecured commercial paper program and help fund operations 

3 Responses to “Harley-Davidson Loan Securization Loss”

  1. 1 J Feb 24th, 2008 at 4:56 pm

    Ah yes- the CDO game I said Harley was playing awhile back, which they denied any significant downside exposure to…… Whoops….

    No problem, says Harley- we’ll just chop what’s left up into even more pieces! Jeezas….

    Would love to see the collateralization for the new credit- Willie G have to put up his leathers? That’s a big waffle to lay off against….. Will be interesting to see if the common shareholders realize how further back in the bus they are being pushed……

    A forward-looking statement from Harley would be nice, but like everyone else, they can’t see how deep this black hole really is yet…….Wait till Harley reveals MORE problems with CDO financing next quarter……

  2. 2 Knuclehead Feb 25th, 2008 at 2:49 pm

    So in the corporate Would what does this all mean? Is this normal when times are ruff?

  3. 3 HDCHOP Feb 25th, 2008 at 2:59 pm

    It means that Harley has difficulties, reselling its loans at a discount (performing and not performing loans), losing money and borrowing more…

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Cyril Huze