New Issue: Toyota Motor Credit sells $2.1 billion of fixed-, floating-rate notes in three parts

By William Gullotti and Cristal Cody

Buffalo, N.Y., June 28 – Toyota Motor Credit Corp. priced $2.1 billion of floating-rate and fixed-rate notes (A1/A+/A+) in three parts on Monday, according to three FWPs filed with the Securities and Exchange Commission and additional details from a market source.

A $650 million tranche of series B floating-rate notes due Dec. 29, 2023 priced at SOFR plus 65 basis points at par. Price talk was in the SOFR plus 70 bps to 75 bps area.

A $1.3 billion tranche of 3.95% notes due June 30, 2025 priced at 99.905 to yield 3.984% for a spread over Treasuries of 80 bps, tighter than spread talk in the 100 bps area.

And an $800 million tranche of 4.45% notes due June 29, 2029 priced at 99.988 to yield 4.452%, or a spread over Treasuries of 120 bps. Price talk was in the 140 bps area over Treasuries.

The 2023 and 2025 notes are non-callable. The 2029 notes have a make-whole call, exercisable in whole or in part, at the greater of the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed discounted to the redemption date at Treasuries plus 20 bps minus accrued interest and par. In either case, accrued and unpaid interest will be paid on the redemption date.

BofA Securities, Inc., Lloyds Securities Inc., SG Americas Securities, LLC, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc. are the joint bookrunning managers for the offering.

Toyota Motor Credit is the U.S. financing arm of the Aichi, Japan-based automotive manufacturer.

Issuer:	Toyota Motor Credit Corp.
Amount:	$2.1 billion
Issue:	Floating-rate notes and fixed-rate notes
Bookrunners:	BofA Securities, Inc., Lloyds Securities Inc., SG Americas Securities, LLC, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
Co-managers:	ANZ Securities, Inc., BBVA Securities Inc., Fifth Third Securities, Inc., Intesa Sanpaolo SpA, Samuel A. Ramirez & Co., Inc., Standard Chartered Bank, Stern Brothers & Co. and UniCredit Capital Markets LLC
Trade date:	June 27
Settlement date:	June 30
Ratings:	Moody’s: A1
	S&P: A+
	Fitch: A+
Distribution:	SEC registered
2023 floaters
Amount:	$650 million
Issue:	Floating-rate medium-term notes, series B
Maturity:	Dec. 29, 2023
Coupon:	SOFR plus 65 bps, floor of 0%
Price:	Par
Yield:	SOFR plus 65 bps
Call option:	Non-callable
Price talk:	SOFR plus 70 bps to 75 bps area
Cusip:	89236TKB0
2025 notes
Amount:	$1.3 billion
Issue:	Fixed-rate medium-term notes, series B
Maturity:	June 30, 2025
Coupon:	3.95%
Price:	99.905
Yield:	3.984%
Spread:	Treasuries plus 80 bps
Call option:	Non-callable
Price talk:	Treasuries plus 100 bps area
Cusip:	89236TKC8
2029 notes
Amount:	$800 million
Issue:	Fixed-rate medium-term notes, series B
Maturity:	June 29, 2029
Coupon:	4.45%
Price:	99.988
Yield:	4.452%
Spread:	Treasuries plus 120 bps
Call option:	Make-whole, in whole or in part, at the greater of the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed discounted to the redemption date at Treasuries plus 20 bps minus accrued interest and par; redemption payment will include accrued and unpaid interest
Price talk:	Treasuries plus 140 bps area
Cusip:	89236TKD6

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