Harley-Davidson completes $230 million sale to KKR and PIMCO

Harley-Davidson Inc. (NYSE: HOG) completed the sale of 95% of its residual interests in securitized consumer loan receivables to investment vehicles managed by KKR and PIMCO for more than $230 million, the company announced.

The transaction represents retail loan receivables of approximately $2 billion and related debt of approximately $1.8 billion as of June 30, 2025. Harley-Davidson Financial Services sold the interests at a premium to par value as part of a strategic partnership to transform the financing unit into a capital-light business.

The sale eliminates approximately $2 billion in variable interest entities and $1.8 billion of debt from Harley-Davidson's balance sheet. The company plans to use the proceeds to support previously announced capital allocation priorities.

"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," said Chairman, President and CEO Jochen Zeitz.

Harley-Davidson targets completion of the remaining transaction aspects by the end of October, including the sale of 4.9% common equity interests at an agreed $1.8 billion valuation to each partner and existing consumer retail loan receivables. Upon completion, investment vehicles managed by KKR and PIMCO will begin acquiring new consumer retail loan receivables originated by HDFS.

The partnership transforms HDFS through the sale of existing and future retail loans while maintaining the unit's strategic value to Harley-Davidson, its dealers and customers. HDFS will continue to originate and service both new and existing retail loans under the arrangement.

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