New Issue: Toyota Motor Credit sells $2.5 billion of senior notes in three parts

By Aleesia Forni

New York, April 6 – Toyota Motor Credit Corp. priced $2.5 billion of senior notes (Aa3/AA-) in three tranches on Tuesday, according to a market source and FWP filings with the Securities and Exchange Commission.

There was $900 million of 1.2% two-year diversity and inclusion notes sold at 99.976 to yield 1.212%, or Treasuries plus 50 basis points.

Pricing came at the tight side of the Treasuries plus 53 bps area guidance, which tightened from the high-50 bps area.

A $350 million two-year diversity and inclusion floating-rate note sold at par to yield Libor plus 38 bps following talk set at the Libor equivalent to the fixed-rate piece.

And finally, $1.25 billion of 1.9% five-year notes priced with a 77 bps spread over Treasuries. The notes sold at 99.815 to yield 1.939%.

Guidance was in the Treasuries plus 80 bps area, and the notes were initially talked in the Treasuries plus high-80 bps area.

Bookrunners for the two-year pieces were CastleOak Securities, LP, Citigroup Global Markets Inc., Lebenthal & Co., LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc. and Williams Capital Group, LP.

Bookrunners for the five-year tranche were Barclays, Citigroup, J.P. Morgan Securities LLC and BofA Merrill Lynch.

Toyota Motor Credit is the Torrance, Calif.-based funding arm of auto manufacturer Toyota.

Issuer:	Toyota Motor Credit Corp.
Issue:	Senior medium-term notes, series B
Amount:	$2.5 billion
Trade date:	April 5
Settlement date:	April 8
Ratings:	Moody’s: Aa3
	Standard & Poor’s: AA-
Distribution:	SEC registered
Two-year notes
Amount:	$900 million
Issue:	Diversity and inclusion senior medium-term notes, series B
Maturity:	April 6, 2018
Bookrunners:	CastleOak Securities, LP, Citigroup Global Markets Inc., Lebenthal & Co., LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc., Williams Capital Group, LP
Co-managers:	Barclays, C.L. King & Associates, Inc., Drexel Hamilton LLC, Guzman & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch, Siebert Brandford Shank & Co., LLC
Coupon:	1.2%
Price:	99.976
Yield:	1.212%
Spread:	Treasuries plus 50 bps
Price guidance:	Treasuries plus 53 bps area, tightened from high-50 bps area
Two-year floaters
Amount:	$350 million
Issue:	Diversity and inclusion senior medium-term notes, series B
Maturity:	April 6, 2018
Bookrunners:	CastleOak Securities, LP, Citigroup Global Markets Inc., Lebenthal & Co., LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc., Williams Capital Group, LP
Co-managers:	Barclays, C.L. King & Associates, Inc., Drexel Hamilton LLC, Guzman & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch, Siebert Brandford Shank & Co., LLC
Coupon:	Libor plus 38 bps
Price:	Par
Yield:	Libor plus 38 bps
Price guidance:	Libor equivalent to two-year fixed-rate notes
Five-year notes
Amount:	$1.25 billion
Maturity:	April 8, 2021
Bookrunners:	Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch
Co-managers:	CastleOak Securities, LP, C.L. King & Associates, Inc., Drexel Hamilton, LLC, Guzman & Co., Lebenthal & Co., LLC, Mischler Financial Group, Inc. , Samuel A. Ramirez & Co., Inc., Siebert Brandford Shank & Co., LLC, Williams Capital Group, LP
Coupon:	1.9%
Price:	99.815
Yield:	1.939%
Spread:	Treasuries plus 77 bps
Price guidance:	Treasuries plus 80 bps area, tightened from Treasuries plus high-80 bps area
Make-whole call:	Treasuries plus 15 bps

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