Pricing Supplement dated October 21, 1999 Rule 424(b)(3)
(To Prospectus dated September 3, 1998 and File No. 333-60913
Prospectus Supplement dated September 3, 1998)
TOYOTA MOTOR CREDIT CORPORATION
Medium-Term Note - Fixed Rate/Floating Rate
_________________________________________________________________________
Principal Amount: $20,000 Trade Date: 10/21/99
Issue Price: 100% Original Issue Date: 10/28/99
Interest Rate: 6.458% Net Proceeds to Issuer: $20,000
Interest Payment Dates: each April 29 Principal's Discount
and October 29, commencing or Commission: 0.0%
April 29,2000
Stated Maturity Date: October 29, 2001
________________________________________________________________________
Day Count Convention:
[x] 30/360 for the period from October 28, 1999 to October 29, 2001
(See "Other Terms" below.)
[ ] Actual/365 for the period from to
[ ] Other (see attached)
Redemption:
[X] The Note cannot be redeemed prior to the Stated Maturity Date.
[ ] The Note may be redeemed prior to Stated Maturity Date.
Initial Redemption Date: Not applicable
Initial Redemption Percentage: Not applicable
Annual Redemption Percentage Reduction: Not applicable
Repayment:
[ ] The Note cannot be repaid prior to the Stated Maturity Date.
[X] The Note can be repaid prior to the Stated Maturity Date
at the option of the Holder of the Note.
Optional Repayment Date(s): See "Additional Terms of the Note -
Repayment Option"
Repayment Price: See "Additional Terms of the Note -
Repayment Option"
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
Other Terms: The Holder of the Note has an option to convert the Note
into a Floating Rate Note. Upon conversion, certain of the
terms of the Note summarized above will be changed. See
"Additional Terms of the Note - Conversion to Floating Rate
Note."
___________________________
Merrill Lynch & Co.
<PAGE>
FURTHER AUTHORIZATIONS
On September 13, 1999, in supplement to the $2,031,395,000
aggregate principal amount(or the equivalent thereof in one or more
foreign or composite currencies) of its Medium-Term Notes which TMCC
was authorized to offer as of September 3, 1998, TMCC authorized the offer
and issuance from time to time of an additional $800,000,000 aggregate
principal amount of its Medium-Term Notes. Accordingly, notwithstanding
anything to the contrary in the Prospectus Supplement dated September 3,
1998 (the "Prospectus Supplement"), the aggregate principal balance of
Medium-Term Notes issued prior to the Prospectus Supplement plus those
which may be offered from time to time from and after the date of the
Prospectus Supplement may equal up to $9,800,000,000 (except that with
respect to Medium-Term Notes sold at a discount to face, the initial
offering price will be used, and with respect to Medium-Term Notes
issued at a premium to face, the face amount shall be used).
ADDITIONAL TERMS OF THE NOTE
Repayment Option
The Note will be repayable by TMCC at the option of the
Holder thereof in whole but not in part at a repayment price equal to
the Market Price (as defined below), together with unpaid interest accrued
thereon to but excluding the date of repayment.
The Holder, the Beneficial Owner of the Note or the
Participant through which the Beneficial Owner owns its interest shall
have the right on any Business Day (as defined below) to request orally
or in writing that TMCC provide a quote for the Market Price of the Note
for that day. TMCC shall provide a written quote to the person or
entity requesting the quote within one Business Day of TMCC's receipt of
the request. The Holder shall have three Business Days after delivery of
the quote to exercise its right to require TMCC to repay the Note at the
Market Price contained in the quote by delivering written notice of such
exercise to the Trustee. The Trustee shall provide written notice of such
exercise to TMCC within one Business Day after receiving same from the
Holder. The repayment shall occur on a Business Day specified by TMCC
which shall be not more than three Business Days after delivery of the
notice to TMCC. The Holder shall have no obligation to exercise the
repayment option after receipt of the quote. However, exercise of
the repayment option will be irrevocable.
The Note will be a Book-Entry Note represented by one
Global Security. So long as the Depositary or its nominee is the
registered owner of the Global Security, the Depositary or its nominee,
as the case may be, will be the sole Holder of the Book-Entry Note
represented by the Global Security and only the Depositary may exercise
the repayment option in respect of the Global Security representing the
Book-Entry Note. However, the Beneficial Owner and the Participant through
which it owns its interest shall have the right to request a Market Price
quote. To exercise the repayment option, the Depositary must notify the
Trustee in writing as outlined above. Accordingly, the Beneficial Owner of
the Global Security that desires to have the Book-Entry Note represented
by such Global Security repaid must instruct the Participant through which
it owns its interest to direct the Depositary to exercise the repayment
option on its behalf. To ensure that the Depositary receives notice from
a Participant in time to deliver notice to the Trustee on a particular day,
the Beneficial Owner must so instruct the Participant through which it
owns its interest before such Participant's deadline for accepting
instructions for that day. Different firms may have different deadlines
for accepting instructions from their customers. Accordingly, the
Beneficial Owner should consult the Participant through which it owns
its interest for the deadline for such Participant. All instructions
given to a Participant from the Beneficial Owner of the Global Security
relating to the option to elect repayment shall be irrevocable. In
addition, at the time such instructions are given, the Beneficial Owner
shall cause the Participant through which it owns its interest to transfer
the Beneficial Owner's interest in the Global Security representing the
related Book-Entry Note on the Depositary's records to the Trustee. The
requirement for physical delivery of a Book-Entry Note in connection with
a demand for repayment will be deemed satisfied when the ownership rights
in the Global Security representing such Book-Entry Note are transferred
by the Direct Participant on the Depositary's records.
The Beneficial Owner of the Global Security shall not be entitled
to receive physical delivery of a Certificated Note, except in the limited
circumstances described under "Description of Note -- Book-Entry Note" in the
Prospectus Supplement. In such circumstances, the Holder of a Certificated
Note shall exercise the repayment option by delivering the Note, together with
the form thereon entitled "Option to Elect Repayment" duly completed, to the
Trustee at its office maintained for such purpose in the Borough of Manhattan,
The City of New York, currently the corporate trust office of the Trustee
located at 4 Albany Street, New York, New York 10006 within the time specified
above. Exercise of such repayment option by the Holder of a Note will be
irrevocable.
All notices from or to the Holder, the Trustee or TMCC in connection
with the repayment of the Note may be delivered in electronic form or by
facsimile. Oral or written requests for Market Price quotes should be directed
to the TMCC Treasury Department.
For purposes of this Note, the following terms shall have the
following meanings:
"Market Price" shall mean the market price for the Note as
determined by TMCC in its sole discretion, reasonably exercised.
"Business Day" shall mean any day other than a Saturday or Sunday or
any other day on which banks in the City of New York or in the City of Los
Angeles are generally authorized or obligated by law or executive order to
close.
"Beneficial Owner", "Participant" and "Direct Participant" shall
have the meanings set forth in the Prospectus Supplement under "Descriptions
of Note -- Book-Entry Note".
Conversion to Floating Rate Note
The Holder shall have the right to convert the interest rate on the
Note from a Fixed Rate of 6.458% to a floating rate of LIBOR (Telerate Page
3750) plus 0.15%. The principal amount of the Note shall remain the same. The
Index Currency shall be U.S. dollars and the Index Maturity shall be three
months. If the Note is converted, the initial floating rate Interest Rate
shall be determined on the second London Business Day (as defined below)
preceding the Conversion Date (as defined below). After conversion, the
Interest Payment Dates shall be changed from semiannual to quarterly payments
and shall occur on each April 29, July 29, October 29 and January 29 of each
year commencing on the first such date following the Conversion Date. The
Interest Reset Dates shall be the same as the Interest Payment Dates. The Day
Count Convention shall be changed to Actual/360 for the period from and
including the Conversion Date to Maturity. Merrill Lynch Capital Services,
Inc. will be the Calculation Agent for the Note. The exercise of the option to
convert the Note into a Floating Rate Note will be irrevocable. The Holder
shall have no further option to convert the Note into a Fixed Rate Note. For
purposes of this Note, "London Business Day" shall mean a day other than a
Saturday or Sunday or any other day on which banks in the City of New York are
generally authorized or obligated by law or executive order to close and a day
on which dealings in U.S. dollars are transacted in the London interbank
market.
The Holder shall exercise the option to convert the Note into a
Floating Rate Note by delivering written notice of exercise to the Trustee.
The Trustee shall provide a copy of the notice to TMCC. If the Trustee
receives notice on or between the first and 12th day of a calendar month, the
"Conversion Date" shall be the 29th day of the calendar month in which the
notice is received. If the Trustee receives notice on or after the 13th day of
a calendar month, the "Conversion Date" shall be the 29th day of the calendar
month immediately following the month in which the notice is received.
Interest shall accrue on the Note at the Fixed Rate to but excluding the
Conversion Date. Interest shall begin to accrue at the Floating Rate on the
Conversion Date to but excluding Maturity.
Only the Depositary may exercise the option to convert the Note
into a Floating Rate Note as long as the Note is held as a Global Security
representing the Book-Entry Note. To exercise the conversion option, the
Depositary must notify the Trustee in writing as outlined above. Accordingly,
the Beneficial Owner of the Global Security that desires to have the
Book-Entry Note represented by such Global Security converted into a Floating
Rate Note must instruct the Participant through which it owns its interest to
direct the Depositary to exercise the conversion option on its behalf. To
ensure that the Depositary receives notice from a Participant in time to
deliver notice to the Trustee on a particular day, the Beneficial Owner must
so instruct the Participant through which it owns its interest before such
Participant's deadline for accepting instructions for that day. Different
firms may have different deadlines for accepting instructions from their
customers. Accordingly, the Beneficial Owner should consult the Participant
through which it owns its interest for the deadline for such Participant. All
instructions given to a Participant from the Beneficial Owner of the Global
Security relating to the option to elect conversion shall be irrevocable.
The Beneficial Owner of the Global Security shall not be entitled
to receive physical delivery of a Certificated Note, except in the limited
circumstances described under "Description of Note -- Book-Entry Note" in the
Prospectus Supplement. In such circumstances, the Holder of a Certificated
Note shall exercise the conversion option by delivering written notice to the
Trustee at its office maintained for such purpose in the Borough of Manhattan,
The City of New York, currently the corporate trust office of the Trustee
located at 4 Albany Street, New York, New York 10006 within the times
specified above. Exercise of such conversion option by the Holder of a Note
will be irrevocable.
All notices from or to the Holder, the Trustee or TMCC in
connection with the conversion of the Note may be delivered in electronic
form or by facsimile.
Minimum Denomination
The Note shall have a minimum denomination of $20,000.
Plan of Distribution
Under the terms of and subject to the conditions of a terms
agreement under the First Amended and Restated Distribution Agreement dated
September 3, 1998 between TMCC and Merrill Lynch & Co., Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("Merrill"), Goldman, Sachs & Co., Lehman Brothers
Inc., J.P. Morgan Securities Inc., Morgan Stanley & Co. Incorporated and
Salomon Smith Barney Inc.(the "Agreement"), Merrill, acting as principal, has
agreed to purchase and TMCC has agreed to sell the Note at 100% of the
principal amount thereof. Merrill proposes to offer the Note at an public
offering price of 100% of the principal amount thereof.
Under the terms and conditions of the Agreement, Merrill is
committed to take and pay for the entire Note offered hereby.
Certain U.S. Tax Considerations
The following is a summary of the principal U.S. federal income tax
consequences of ownership of the Note. The summary concerns a U.S. Holder (as
defined in the Prospectus Supplement) who holds the Note as a capital asset
and does not deal with special classes of holders such as dealers in
securities or currencies, persons who hold the Note as a hedge against
currency risks or who hedge any currency risks of holding the Note, tax-exempt
investors, or a U.S. Holder whose functional currency is other than the U.S.
dollar or persons who acquire, or for income tax purposes are deemed to have
acquired, the Note 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 Note 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.
Except where otherwise indicated below, this summary supplements
and, to the extent inconsistent, replaces the discussion under the caption
"United States Taxation" in the Prospectus Supplement.
U.S. Holder
Since the Holder has the right to require TMCC to repay the Note at
the Market Price, there is a possibility that the Note will not be outstanding
until the Stated Maturity Date. The general rule under the regulations
regarding OID is that in determining the yield and maturity of a debt
instrument that provides a Holder with an unconditional option or options,
exercisable on one or more dates during the term of the debt instrument that
if exercised require payments to be made on the debt instrument under an
alternative schedule, the Holder will be deemed to exercise such option or
combination of options in a manner that maximizes the yield on the debt
instrument. Applying the foregoing rules, the Note is treated as if the Holder
will not exercise the repayment option and the Note remains outstanding until
the Stated Maturity Date. The Holder also has the right to convert the
interest rate on the Note from a Fixed Rate of 6.458% to a floating rate of
LIBOR plus 0.15%. Under the regulations' presumptions, the Note is treated as
if the Holder will also not exercise the right to convert. If contrary to the
presumptions in the regulations, the Holder does exercise the right to
convert, then solely for the purposes of accruing OID, the Note will be
treated as having been reissued at its face amount as of such date bearing the
floating rate of LIBOR plus 0.15%. Thus, amounts payable with respect to the
Note at the Fixed Rate, and if the right to convert is exercised, at the
floating rate will be includible in income by a U.S. Holder as ordinary
interest at the time the interest payments are accrued or received in
accordance with such U.S. Holder's regular method of tax accounting. An
exercise by the Holder of the right to convert to a floating rate will not be
treated as a sale or exchange of the Note, but an exercise by the Holder of
the right to repayment will trigger gain or loss measured by the difference
between the Holder's tax basis and the Market Price received on repayment.
