Toyota Motor (NYSE:TM) Credit Corporation (TMCC) has entered into a series of new credit agreements totaling $15 billion, according to a recent 8-K filing with the Securities and Exchange Commission. The agreements, dated November 15, 2024, include 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.
The credit facilities involve multiple borrowers, including TMCC and its affiliates such as Toyota Motor Finance (Netherlands) B.V., Toyota Financial Services (UK) PLC, and others. BNP Paribas (OTC:BNPQY) serves as the Administrative Agent, with additional involvement from Citibank, Bank of America, JPMorgan Chase (NYSE:JPM) Bank, and MUFG Bank, among others as lenders and arrangers.
These facilities are subject to customary borrowing conditions, with TMCC agreeing to certain covenants including negative pledge provisions and limitations on consolidations, mergers, and asset sales. The agreements were not drawn upon as of the filing date.
The new agreements replace previous credit facilities of the same amounts that were dated November 17, 2023, and which were terminated on November 15, 2024. The new facilities are intended for general corporate purposes.
The lenders participating in the credit agreements have engaged in various transactions with TMCC and its affiliates in the past and may continue to do so in the future, for which they receive customary fees and expenses.
This financial move by TMCC, a subsidiary of Toyota Financial Services Corporation and ultimately Toyota Motor Corporation, reflects the company's ongoing financial strategy and supports its corporate funding needs. The information provided in this article is based on the company's SEC filing.
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