PRICING SUPPLEMENT
- ------------------
(To Prospectus dated November 18, 1996)
$25,000,000
[LOGO]
Household Finance Corporation
7.04% Redeemable Notes due August 17, 2012
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The 7.04% Redeemable Notes due August 17, 2012 (the "Notes") are part of a
series of Medium Term Notes of Household Finance Corporation ("HFC" or the
"Company") described in the accompanying Prospectus. Interest on the Notes will
be payable monthly in arrears on the 17th day of each month, commencing
September 17, 1997 and on the date the Notes are redeemed or mature, at a per
annum rate equal to 7.04%. The Notes will mature on August 17, 2012 but may, at
the option of HFC, be redeemed in whole on August 17, 2001 and on each Interest
Payment Date occurring in February and August thereafter, at a price equal to
100% of the principal amount thereof plus the amount of interest accrued since
the last date interest was paid on the Notes. The Notes will be issued in
book-entry form through the facilities of The Depository Trust Company in
minimum denominations of $1,000 and integral multiples thereof.
See "Certain Risk Factors" on page PS-2 for certain risks that should be
considered in connection with an investment in the Notes offered hereby.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PRICING SUPPLEMENT OR THE ACCOMPANYING PROSPECTUS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
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The Notes will be sold to the public at varying prices related to
prevailing market prices as determined by the several Underwriters at the time
of sale. The net proceeds to HFC, before deducting expenses, if any, payable by
HFC, will be 97.75% of the principal amount of Notes offered hereby, or
$24,437,500 in the aggregate. See "Supplemental Plan of Distribution" herein.
The Notes are offered by the several Underwriters, subject to prior sale,
when, as and if issued to and accepted by them and subject to certain other
conditions. The Underwriters reserve the right to withdraw, cancel or modify
such offer and to reject orders in whole or in part. It is expected that
delivery of the Notes will be made in book-entry form through the facilities of
The Depository Trust Company on or about August 18, 1997.
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Merrill Lynch & Co.
PaineWebber Incorporated
Prudential Securities Incorporated
A.G. Edwards & Sons, Inc.
Fidelity Capital Markets
A Division of National Financial Services Corporation
McDonald & Company Securities, Inc.
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The date of this Pricing Supplement is August 7, 1997.
<PAGE>
CERTAIN RISK FACTORS
This Pricing Supplement does not describe all of the risks of an investment
in the Notes. HFC and the Underwriters disclaim any responsibility to advise
prospective investors of such risks as they change subsequent to the date of
this Pricing Supplement. Prospective investors should consult their own
financial and legal advisors as to the risks entailed by an investment in the
Notes and the suitability of investing in the Notes in light of their particular
circumstances. Prospective investors should be able to bear the risk of
redemption and other risks relating to an investment in the Notes.
HFC can be expected to redeem the Notes on the Redemption Dates specified
below if prevailing interest rates on such Redemption Dates are expected to be
lower than 7.04%. If this occurs, registered holders (and beneficial owners) of
the Notes generally will not be able to reinvest the redemption proceeds in a
comparable security at an effective interest rate as high as the interest rate
on the Notes. Accordingly, prospective investors should consider the related
reinvestment risk in light of other investments available at the time of an
investment in the Notes.
HFC's option to redeem the Notes is likely to affect the market value of
the Notes. In particular, as each Redemption Date approaches, the market value
of the Notes generally will not rise substantially above the redemption price
because of such optional redemption feature.
SUPPLEMENTAL DESCRIPTION OF NOTES
The following description of the particular terms of the Notes offered
hereby supplements, and to the extent inconsistent therewith replaces, the
description of the general terms and provisions of the Medium Term Notes as set
forth and described in the accompanying Prospectus, to which description
reference is hereby made.
The 7.04% Redeemable Notes due August 17, 2012 (the "Notes") are Fixed Rate
Notes (as defined in the accompanying Prospectus) and are part of a series of
HFC Medium Term Notes described in the accompanying Prospectus. Interest on the
Notes will be payable monthly in arrears on the 17th day of each month (each, an
"Interest Payment Date"), commencing September 17, 1997, and on the date the
Notes are redeemed or mature, at a per annum rate equal to 7.04%, to the persons
in whose names the Notes are registered at the close of business on the second
day of the such month (each, a "Regular Record Date"). For purposes of
calculating the interest accrued on the Notes, it will be assumed that each
month consists of 30 days and each year consists of 360 days.
The Notes will mature on August 17, 2012. However, at the option of HFC,
the Notes may be redeemed in whole, on August 17, 2001 and on each Interest
Payment Date occurring in February and August thereafter (each a "Redemption
Date"), upon not less than 30 nor more than 60 days' prior written notice in the
manner provided in the Indenture (as defined in the accompanying Prospectus), at
a price equal to 100% of the principal amount thereof plus the amount of
interest accrued since the last date interest was paid on the Notes.
The interest rate paid by HFC on various issues of Medium Term Notes may
differ depending on a number of things, including the aggregate principal amount
of securities purchased in any single transaction.
The Notes will be issued in book-entry form through the facilities of The
Depository Trust Company in minimum denominations of $1,000 and integral
multiples thereof. Except as otherwise provided in the accompanying Prospectus,
owners of beneficial interests in Notes issued in book-entry form will not be
entitled to have Notes registered in their names, will not receive or be
entitled to receive physical delivery of Notes in definitive form and will not
be considered the owners or holders thereof under the Indenture. For a
description of The Depository Trust Company and the terms of the depositary
arrangements relating to payments, transfers, redemptions, notices and other
matters, see "Description of Medium Term Notes--Book-Entry Notes" in the
accompanying Prospectus.
PS-2
<PAGE>
SUPPLEMENTAL PLAN OF DISTRIBUTION
Subject to the terms and conditions set forth in the Terms Agreement, dated
August 7, 1997, and the Distribution Agreement, dated November 20, 1996, HFC has
agreed to sell to each of the Underwriters named below (the "Underwriters"), and
each of the Underwriters, for whom Merrill Lynch, Pierce, Fenner & Smith
Incorporated is acting as representative, has severally agreed to purchase, the
respective principal amount of the Notes set forth opposite its name below at a
price equal to 97.75% of the principal amount thereof:
Principal Amount
Underwriter of Notes
----------- -----------
Merrill Lynch, Pierce, Fenner & Smith
Incorporated .................................. $13,000,000
PaineWebber Incorporated .................................. 3,000,000
Prudential Securities Incorporated ........................ 3,000,000
A.G. Edwards & Sons, Inc. ................................. 2,000,000
Fidelity Capital Markets
A Division of National Financial Services Corporation... 2,000,000
McDonald & Company Securities, Inc. ....................... 2,000,000
-----------
Total ........................................ $25,000,000
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The Underwriters have advised HFC that they propose to offer the Notes from
time to time for sale, in negotiated transactions or otherwise, at prices
determined at the time of sale. The Underwriters may effect such transactions by
selling Notes to or through dealers and such dealers may receive compensation in
the form of underwriting discounts, concessions or commissions from an
Underwriter, in an amount not to exceed 2% of the principal amount of such
Notes. The Underwriters and any dealers that participate with the Underwriters
in the distribution of the Notes may be deemed to be "underwriters" within the
meaning of the Securities Act of 1933 (the "Securities Act"), and any discounts
or commissions received by them and any profit on the resale of Notes by them
may be deemed to be underwriting compensation.
HFC has agreed to indemnify the several Underwriters against certain
liabilities, including liabilities under the Securities Act. See "Offering of
Medium Term Notes and Warrants" in the accompanying Prospectus.
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Information relating to the Notes offered hereby may be obtained from
Merrill Lynch, Pierce, Fenner & Smith Incorporated by calling 1-800-MERRILL.
PS-3
<PAGE>
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No dealer, salesperson or other individual has been authorized to give any
information or to make any representations other than those contained or
incorporated by reference in this Pricing Supplement or the Prospectus in
connection with the offer made by this Pricing Supplement and the Prospectus
and, if given or made, such information or representations must not be relied
upon as having been authorized by HFC or the Underwriters. Neither the delivery
of this Pricing Supplement or the Prospectus Supplement nor any sale made
hereunder or thereunder shall under any circumstances create an implication that
there has not been any change in the affairs of HFC since the date hereof or
thereof. This Pricing Supplement and the Prospectus do not constitute an offer
or solicitation by anyone in any jurisdiction in which such offer or
solicitation is not authorized or in which the person making such offer or
solicitation is not qualified to do so or to anyone to whom it is unlawful to
make such offer or solicitation.
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TABLE OF CONTENTS
Page
----
Pricing Supplement
Certain Risk Factors .................................................... PS-2
Supplemental Description of Notes ....................................... PS-2
Supplemental Plan of Distribution ....................................... PS-3
Prospectus
Available Information ................................................... 2
Incorporation of Certain Documents by
Reference ............................................................. 2
Household Finance Corporation ........................................... 3
Use of Proceeds ......................................................... 3
Ratio of Earnings to Fixed Charges ...................................... 3
Important Currency Information .......................................... 4
Description of Medium Term Notes ........................................ 4
Currency Risks .......................................................... 19
Description of Note Warrants ............................................ 21
Certain United States Federal Income Tax
Consequences .......................................................... 22
Offering of Medium Term Notes and Warrants .............................. 36
ERISA Matters ........................................................... 37
Legal Opinions .......................................................... 37
Experts ................................................................. 37
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$25,000,000
[LOGO]
Household Finance
Corporation
7.04% Redeemable Notes
due August 17, 2012
------------------
PRICING SUPPLEMENT
------------------
Merrill Lynch & Co.
PaineWebber Incorporated
Prudential Securities Incorporated
A.G. Edwards & Sons, Inc.
Fidelity Capital Markets
A Division of National Financial Services Corporation
McDonald & Company Securities, Inc.
August 7, 1997
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