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Harley Davidson plans $625 mln loan-backed notes

NEW YORK, Feb 17 (Reuters) - Harley-Davidson Inc. plans to offer $625 million in asset-backed securities, supported by loans its finance unit made to buyers of its motorcycles, a source close to the deal said on Tuesday.

J.P. Morgan Securities is heading the deal's underwriting team that includes ABN AMRO, BNP Paribas and Citigroup Global Markets, the source said.

Following are the early terms and conditions for "Harley-Davidson (HDMOT) 2004-1" (subject to change):

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Class A1

Issue Amount $379 million

Average Life 1.0 year

Price Guidance eurodollar futures + 4 bps area

Ratings Aaa (Moody's), AAA (S&P)

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Class A2

Issue Amount $214.75 million

Average Life 2.87 years

Price Guidance Interpolated swaps + 5 bps area

Ratings Aaa (Moody's), AAA (S&P)

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Class B

Issue Amount $31.25 million

Average Life 1.68 years

Price Guidance eurodollar futures + low-20s bps

Ratings A2 (Moody's), A (S&P)

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Settlement Date Feb 25, 2004