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.
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