By Devika Patel
Knoxville, Tenn., July 11 – Toyota Motor Corp. offered further details about a $2 billion sale of fixed-rate senior notes (Aa3/AA-/A) that priced in three tranches on Tuesday on the tight side of guidance, according to an FWP filed with the Securities and Exchange Commission.
The company sold $750 million of 3.183% three-year notes at a spread of Treasuries plus 50 basis points. The notes were initially talked to price at a spread in the Treasuries plus 62.5 bps area and later guided to come in the Treasuries plus 52 bps area, plus or minus 2 bps. These notes priced at par to yield 3.183%.
Toyota priced $750 million of 3.419%% five-year notes at a spread of 65 bps over Treasuries, tighter than initial talk in the Treasuries plus 77.5 bps spread area and at the tight end of later guidance in the Treasuries plus 67 bps area, plus or minus 2 bps. These notes priced at par to yield 3.419%.
The company sold $500 million of 3.669% 10-year notes at an 80 bps over Treasuries spread. The notes were guided to print in the Treasuries plus 82 bps area, plus or minus 2 bps. Initial price talk on the 10-year notes was in the Treasuries plus 97.5 bps area. These notes priced at par to yield 3.669%.
J.P. Morgan Securities LLC, BofA Merrill Lynch and Citigroup Global Markets Inc. were the bookrunners.
Toyota held fixed income investor calls in the United States, Europe and Asia over the last week of June for the offering.
Proceeds from the deal will be used for general corporate purposes, including working capital and capital expenditures.
Toyota is a multinational automotive manufacturer based in Aichi, Japan.
| Issuer: | Toyota Motor Corp.
|
| Amount: | $2 billion
|
| Description: | Senior notes
|
| Call: | Non-callable
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch and Citigroup Global Markets Inc.
|
| Co-managers: | Nomura Securities International, Inc., SMBC Nikko Securities America, Inc., Morgan Stanley & Co. LLC, Daiwa Securities America Inc. and Mizuho Securities USA Inc.
|
| Trade date: | July 10
|
| Settlement date: | July 20
|
| Ratings: | Moody’s: Aa3
|
| S&P: AA-
|
| Fitch: A
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Description: | Fixed-rate notes
|
| Maturity: | July 20, 2021
|
| Coupon: | 3.183%
|
| Price: | Par
|
| Yield: | 3.183%
|
| Spread: | Treasuries plus 50 bps
|
| Price guidance: | Treasuries plus 52 bps area, plus or minus 2 bps; initial price talk at Treasuries plus 62.5 bps area
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Description: | Fixed-rate notes
|
| Maturity: | July 20, 2023
|
| Coupon: | 3.419%
|
| Price: | Par
|
| Yield: | 3.419%
|
| Spread: | Treasuries plus 65 bps
|
| Price guidance: | Treasuries plus 67 bps area, plus or minus 2 bps; initial price talk at Treasuries plus 77.5 bps area
|
|
|
| 10-year notes
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| Amount: | $500 million
|
| Description: | Fixed-rate notes
|
| Maturity: | July 20, 2028
|
| Coupon: | 3.669%
|
| Price: | Par
|
| Yield: | 3.669%
|
| Spread: | Treasuries plus 80 bps
|
| Price guidance: | Treasuries plus 82 bps area, plus or minus 2 bps; initial price talk at Treasuries plus 97.5 bps area
|
|
|
|
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