Toyota Said to Plan $1.5 Billion Sale With Fixed, Floating Bonds

Toyota Motor Corp. (7203)’s U.S. finance unit plans to sell $1.5 billion of three-year bonds split between fixed- and floating-rate debt.

Toyota Motor Credit intends to issue equal $750 million portions of securities that may yield 42 basis points more than Treasuries and floating-rate notes paying 29 basis points more than the London interbank offered rate, according to a person familiar with the offering who asked not to be identified, citing lack of authorization to speak publicly.

The unit’s $1.5 billion of 2 percent debt due September 2016 traded May 10 at 103.7 cents on the dollar to yield 0.86 percent, or 51.3 basis points more than Treasuries, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. Those notes are rated Aa3 by Moody’s Investors Service and an equivalent AA- by Standard & Poor’s.

Toyota Motor Credit offers services including retail financing, retail leasing, wholesale financing and insurance, according to a company regulatory filing. Toyota is the world’s largest carmaker.

Libor, the rate at which banks say they can borrow in dollars from each other, was set at 0.274 percent today.

To contact the reporter on this story: Charles Mead in New York at cmead11@bloomberg.net

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

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