Toyota Raises $1.5 Billion With Sale of Fixed, Floating BondsCharles Mead
Toyota Motor Corp.’s U.S. finance unit sold $1.5 billion of three-year bonds split between fixed-and floating-rate debt.
Toyota Motor Credit issued equal $750 million portions of 0.8 percent securities that yield 42 basis points more than similar-maturity Treasuries and floating-rate notes paying 29 basis points more than the three-month London interbank offered rate, according to data compiled by Bloomberg.
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.