Harley-Davidson Soars as KKR, Pimco to Buy Stake in Finance Arm

Motorcycles on the showroom floor at a Harley-Davidson dealership in Louisville, Kentucky, US.Photographer: Luke Sharrett/Bloomberg

Shares of Harley-Davidson Inc. surged Wednesday after the motorcycle maker announced plans to monetize part of its finance unit through selling a nearly 10% stake and more than $5 billion of retail loans.

KKR & Co. and Pacific Investment Management Co. will each buy 4.9% common-equity interests in Harley-Davidson Financial Services as well as retail loan receivables at a premium to face value, Harley-Davidson said in a statementBloomberg Terminal. Bloomberg News reported Monday that advanced talks on a deal were occurring.