Toyota Motor Credit secures $5 billion credit facility

Published 01/04/2025, 11:48
© Reuters

Toyota Motor (NYSE:TM) Credit Corporation (TMCC) has entered into a $5 billion revolving credit agreement with Toyota Motor Sales, U.S.A., Inc. (TMS), effective today. This new credit line replaces the previous agreement between TMCC and TMS, which was established on April 1, 2024, and subsequently terminated on the same day the new agreement was signed.

The credit facility is intended for general corporate purposes and was not drawn upon at the time of the filing. It will remain available to TMCC until March 31, 2028. TMCC, a wholly-owned subsidiary of Toyota Financial Services International Corporation, which in turn is owned by Toyota Financial Services Corporation and ultimately by Toyota Motor Corporation (TMC), has secured this line of credit from TMS, a company entirely owned by Toyota Motor North America, Inc., itself a subsidiary of TMC.

This financial move is disclosed in a Form 8-K filed with the Securities and Exchange Commission, indicating TMCC’s entry into a material definitive agreement, the termination of a previous agreement, and the creation of a direct financial obligation.

The details of the agreement, which are available in the full text of the attached Exhibit 10.1 in the SEC filing, reveal that the credit line will bolster TMCC’s financial flexibility over the next three years. This strategic financial arrangement underscores the interconnected financial relationships within the Toyota corporate family and provides TMCC with significant resources to support its operations and potential growth initiatives.

The information provided is based on a press release statement and the latest SEC filing by Toyota Motor Credit Corporation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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