Toyota’s U.S. Finance Unit Sells $1.5 Billion of Five-Year Notes

Toyota Motor Corp. (7203), the maker of the world’s best-selling gasoline-electric vehicle, sold $1.5 billion of five-year, dollar-denominated debt.

Toyota Motor Credit Corp., the company’s U.S. finance unit, issued the 1.25 percent notes to yield 65 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. Proceeds from the debt may be used for general corporate purposes, said a person familiar with the offering, who asked not to be identified because they were not authorized to speak about the transaction.

Toyota’s U.S. sales surged 42 percent in September, exceeding the average estimate of a 36 percent gain by eight analysts.

The company last issued fixed-rate, dollar-denominated debt on July 16. Its $1.5 billion of 0.875 percent, three-year notes from that offering traded at 100.5 cents on the dollar yesterday to yield 0.69 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

The new bonds are expected to be rated Aa3 by Moody’s Investors Service, Bloomberg data show.

Barclays Plc, Morgan Stanley (MS), Royal Bank of Scotland Group Plc and UBS AG managed today’s sale, the data show.

To contact the reporter on this story: Peter Rawlings in New York at prawlings@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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