10:17 AM EDT, 07/30/2025 (MT Newswires) -- Harley-Davidson ( HOG ) shares jumped 22% in recent Wednesday trading after the company agreed to sell a 4.9% stake in its financial services unit to both KKR (KKR) and investment management firm PIMCO as part of a long-term partnership with the deal providing $1.25 billion in discretionary cash.

The financial services unit will also sell retail loan receivables exceeding $5 billion at a premium and continue to originate and service loans, Harley-Davidson ( HOG ) said.

Harley-Davidson ( HOG ) plans to use the proceeds to reduce $450 million of debt, return $500 million to shareholders and fund growth investments

KKR and PIMCO also agreed to buy two-thirds of the new retail loans generated by the financial services unit annually for at least five years, Harley-Davidson ( HOG ) said.

Separately, Harley-Davidson ( HOG ) reported Q2 revenue Wednesday of $1.31 billion, down from $1.62 billion a year earlier. Analysts polled by FactSet expected $1.1 billion.

Price: 28.11, Change: +5.16, Percent Change: +22.48