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Pricing Supplement dated August 3, 1998 Rule 424 (b) (3)
(to Prospectus dated March 9, 1994 and File No. 33-52359
Prospectus Supplement dated March 9, 1994)
TOYOTA MOTOR CREDIT CORPORATION
Medium-Term Notes - Floating Rate
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Principal Amount: $250,000,000 Trade Date: July 29, 1998
Issue Price: See "Additional Original Issue Date: August 3, 1998
Terms of the Notes"
Initial Interest Rate: See Net Proceeds to Issuer: $250,000,000
"Additional Terms of the Notes" Principal's Discount or Commission:0.00%
Interest Payment Period: Quarterly
Stated Maturity Date: August 3, 1999
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Calculation Agent: Bankers Trust Company
Interest Calculation:
[x ] Regular Floating Rate Note [ ] Floating Rate/Fixed Rate Note
[ ] Inverse Floating Rate Note (Fixed Rate Commencement Date):
(Fixed Interest Rate):
[ ] Other Floating Rate Note (Fixed Interest Rate):
(see attached)
Interest Rate Basis: [ ] CD Rate [ ] Commercial Paper Rate
[ ]Prime Rate [ ] Eleventh District Cost of Funds Rate
[x ] Federal Funds Rate [ ] LIBOR [ ] Treasury Rate
[ ] Other (see attached)
If LIBOR, Designated LIBOR Page: [ ] Reuters Page:
[ ] Telerate Page: 3750
Initial Interest Reset Date August 3, 1998 Spread (+/-): +0.02%
Interest Rate Reset Period: Daily Spread Multiplier: N/A
Interest Reset Dates: Each Business Day Maximum Interest Rate: N/A
Interest Payment Dates: November 3, 1998, Index Maturity: N/A
February 3, 1999, May 3, 1999 and Index Currency: U.S. Dollars
August 3, 1999
Day Count Convention:
[ ] 30/360 for the period from to
[ x] Actual/360 for the period from August 3, 1998 to August 3, 1999
[ ] Other (see attached) to
Redemption:
[ x] The Notes cannot be redeemed prior to the Stated Maturity Date.
[ ] The Notes may be redeemed prior to the Stated Maturity Date.
Initial Redemption Date: N/A
Initial Redemption Percentage: N/A
Annual Redemption Percentage Reduction: N/A
Repayment:
[ x] The Notes cannot be repaid prior to the Stated Maturity Date.
[ ] The Notes can be repaid prior to the Stated Maturity Date at the
option of the holder of the Notes.
Optional Repayment Date(s):
Repayment Price: %
Currency:
Specified Currency: U.S. Dollars
(If other than U.S. Dollars, see attached)
Minimum Denominations:
(Applicable only if Specified Currency is other than U.S. Dollars)
Original Issue Discount: [ ] Yes [ x] No
Total Amount of OID:
Yield to Maturity:
Initial Accrual Period:
Form: [ x] Book-entry [ ] Certificated
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Morgan Stanley & Co. Incorporated
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ADDITIONAL TERMS OF THE NOTES
Interest
The Initial Interest Rate for the Medium-Term Notes offered by this pricing
supplement (the "Notes") will be equal to the Federal Funds Rate on July 30,
1998, plus 0.02%. The Interest Rate with respect to each subsequent
Interest Reset Date will be equal to the Federal Funds Rate on the related
Interest Determination Date plus 0.02%. The Interest Determination Date
with respect to the Notes will be two Business Days preceding each Interest
Reset Date.
Plan of Distribution
Under the terms of and subject to the conditions of an agreement dated
December 16, 1993 (the "Agreement"), between TMCC and Morgan Stanley & Co.
Incorporated ("Morgan Stanley") and an Appointment Agreement Confirmation,
dated July 29, 1998, Morgan Stanley, acting as principal, has agreed to
purchase and TMCC has agreed to sell the Notes at 100% of their principal
amount. Morgan Stanley may resell the Notes to one or more investors
or to one or more broker-dealers (acting as principal for the purposes of
resale) at varying prices related to prevailing market prices at the time of
resale, as determined by Morgan Stanley.
Under the terms and conditions of the Agreement, Morgan Stanley is committed
to take and pay for all of the Notes offered hereby if any are taken.
Certain U.S. Tax Considerations
The following is a summary of certain U.S. federal income tax consequences of
ownership of the Notes. The summary concerns U.S. Holders (as defined in the
Prospectus Supplement) who hold the Notes as capital assets and does not deal
with special classes of holders such as dealers in securities or currencies,
persons who hold the Notes as a hedge against currency risks or who hedge
any currency risks of holding the Notes, tax-exempt investors, or U.S.
Holders whose functional currency is other than the U.S. dollar or persons who
acquire, or or income tax purposes are deemed to have acquired, the Notes in an
exchange, or for property other than cash. The discussion below is based upon
the Internal Revenue Code of 1986, as amended, and final, temporary and
proposed United States Treasury Regulations. Persons considering the
purchase of the Notes should consult with and rely solely upon their own tax
advisors concerning the application of U.S. federal income tax laws to their
particular situations as well as any consequences arising under the laws of
any other domestic or foreign taxing jurisdiction.
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Certain other tax consequences of ownership of the Notes are discussed in the
accompanying Prospectus Supplement under the caption "United States Taxation."
Except where otherwise indicated below, this summary supplements and, to the
extent inconsistent, replaces such discussion under the caption "United States
Taxation" in the Prospectus Supplement.
U.S. Holders. The Notes, which are Floating Rate Notes, are treated as
variable rate debt instruments for income tax purposes. The stated interest on
the Notes, set at a variable rate based on the Federal Funds Rate plus 0.02% is
a qualified floating rate for federal income tax purposes. Therefore, all
stated interest on the Notes is deemed to be qualified stated interest.
Thus the amount payable with respect to a Note at the Floating Interest Rate
should be includible in income by a U.S. Holder as ordinary interest at the
time the interest payments are accrued or are received in accordance with
such U.S. Holder's regular method of tax accounting.
