By Aleesia Forni
New York, March 8 – Commonwealth Bank of Australia priced $2.5 billion of senior notes (Aa2/AA-/AA-) on Tuesday in three parts, a market source said.
A $750 million 2.05% tranche of three-year notes sold at 99.87 to yield 2.095%, or Treasuries plus 108 basis points.
Pricing came at the tight side of the Treasuries plus 110 bps area guidance, which tightened from the Treasuries plus 120 bps area.
Also, $750 million three-year floaters sold at par to yield Libor plus 106 bps after being talked at the Libor equivalent to the fixed-rate piece.
And $1 billion of 2.55% five-year notes sold with a 125 bps spread over Treasuries. Pricing was at 99.837 to yield 2.585%.
Guidance was in the Treasuries plus 130 bps area, inside talk set in the Treasuries plus 140 bps area.
Bookrunners were Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC.
The banking and financial services company is based in Sydney, Australia.
| Issuer: | Commonwealth Bank of Australia
|
| Issue: | Senior notes
|
| Amount: | $2.5 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC
|
| Trade date: | March 8
|
| Settlement date: | March 15
|
| Ratings: | Moody’s: Aa2
|
| Standard & Poor’s: AA-
|
| Fitch: AA-
|
| Distribution: | Regulation S
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Maturity: | March 15, 2019
|
| Coupon: | 2.05%
|
| Price: | 99.87
|
| Yield: | 2.095%
|
| Spread: | Treasuries plus 108 bps
|
| Price guidance: | Treasuries plus 110 bps area, tightened from Treasuries plus 120 bps area
|
|
|
| Three-year floaters
|
| Amount: | $750 million
|
| Maturity: | March 15, 2019
|
| Coupon: | Libor plus 106 bps
|
| Price: | Par
|
| Yield: | Libor plus 106 bps
|
| Price guidance: | Libor equivalent to three-year fixed-rate notes
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | March 15, 2021
|
| Coupon: | 2.55%
|
| Price: | 99.837
|
| Yield: | 2.585%
|
| Spread: | Treasuries plus 125 bps
|
| Price guidance: | Treasuries plus 130 bps area, tightened from Treasuries plus 140 bps area
|
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