Toyota Motor gets $15 billion 364-day, three- and five-year facilities

By Wendy Van Sickle

Columbus, Ohio, Nov. 17 – Toyota Motor Credit Corp. obtained a $5 billion 364-day syndicated credit facility, a $5 billion three-year syndicated credit facility and a $5 billion five-year syndicated credit facility, according to an 8-K filed Thursday with the Securities and Exchange Commission.

Under each facility, Toyota Motor, Toyota Motor Finance (Netherlands) and Toyota Financial Services (UK) may draw up to $5 billion, Toyota Credit Canada may borrow $866.6 million ($866.8 million for the 364-day facility), Toyota Credit de Puerto Rico may borrow $1 billion, and Toyota Kreditbank, Toyota Leasing and Toyota Finance Australia may draw $500 million. The aggregate amount of borrowings under each facility may not exceed the total commitment amount of $5 billion.

For the 364-day facility, interest on the term loans will be a spread of Libor plus 75 basis points to 112.5 bps based on the company’s credit ratings. After the term loan extension, the margin will range from Libor plus 75 bps to 137.5 bps.

For the three-year loans, interest will range from Libor plus 50 bps to 87.5 bps for the minimum rate and Libor plus 125 bps to 162.5 bps for the maximum rate.

For the five-year loans, interest ranges from Libor plus 75 bps to 112.5 bps for the minimum rate and Libor plus 150 bps to 187.5 bps for the maximum rate.

Each of the three facilities has a swingline sub-facility of up to $1.25 billion each, of which $500 million will be available to Toyota Finance Australia.

Proceeds of each facility may be used for general corporate purposes; none of the facilities was drawn at closing.

BNP Paribas Securities Corp., Citigroup Global Markets Inc., Bank of America Merrill Lynch and Bank of Tokyo-Mitsubishi UFJ, Ltd. are the joint lead arrangers and book managers; BNP Paribas is the administrative agent, swingline agent and swingline lender; Citibank, NA and Bank of America, NA are syndication agents and swingline lenders; and Bank of Tokyo-Mitsubishi UFJ, Ltd. also is a syndication agent.

The new credit facilities replace the 364-day credit agreement, three-year credit agreement and five-year credit agreement Toyota entered into on Nov. 18, 2015 with BNP Paribas as administrative agent.

The U.S. funding arm of Toyota is based in Torrance, Calif.

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