By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Nov. 9 – Westpac Banking Corp. priced four new dollar-denominated notes on Wednesday, according to a market source and FWPs filed with the Securities and Exchange Commission.
The Sydney, Australia-based bank sold a pair of fixed-rate notes and floating-rate notes under one prospectus, due 2025 (A1/A+).
The $500 million of floating-rate notes due Nov. 17, 2025 priced at par. The notes bear interest at compounded SOFR plus a margin of 72 basis points.
The $1 billion second tranche of 5.512% notes due Nov. 17, 2025 priced at par, or at a spread of 58 bps above Treasuries after price talk in the Treasuries plus 80 bps area.
A concurrent offering for a fixed-rate note due 2028 is also part of the transaction.
The $1.25 billion of 5.535% notes due Nov. 17, 2028 priced at par, or at Treasuries plus 103 bps. The notes were talked in the 130 bps area.
A separate subordinated note offering for fixed-rate notes due in 2033 (Baa1/BBB+/A-) is being offered under a second prospectus. The notes will qualify as regulatory capital.
The $750 million of 6.82% subordinated notes due Nov. 17, 2033 priced at par, or at Treasuries plus 233 bps after talk coming in at the Treasuries plus 260 bps area.
The same bookrunners are being used for all the notes: BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Westpac Banking Corp.
Proceeds will be used for general corporate purposes.
| Issuer: | Westpac Banking Corp.
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| Amount: | $3.5 billion
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Westpac Banking Corp.
|
| Co-managers: | BMO Capital Markets Corp., CIBC World Markets Corp., ICBC Standard Bank plc, ING Financial Markets LLC and Scotia Capital (USA) Inc.
|
| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | King & Wood Mallesons and Debevoise & Plimpton LLP
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| Counsel to underwriters: | Sidley Austin LLP
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| Trade date: | Nov. 8
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| Settlement date: | Nov. 17
|
| Distribution: | SEC registered
|
|
|
| Floating-rate notes
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| Amount: | $500 million
|
| Issue: | Senior notes
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| Maturity: | Nov. 17, 2025
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| Coupon: | SOFR plus 72 bps
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| Price: | Par
|
| Yield: | SOFR plus 72 bps
|
| Ratings: | Moody’s: A1
|
| Fitch: A+
|
| Price talk: | SOFR plus equivalent
|
| Cusip: | 961214FM0
|
|
|
| 2025 notes
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| Amount: | $1 billion
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| Issue: | Senior notes
|
| Maturity: | Nov. 17, 2025
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| Coupon: | 5.512%
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| Price: | Par
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| Yield: | 5.512%
|
| Spread: | Treasuries plus 58 bps
|
| Ratings: | Moody’s: A1
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| Fitch: A+
|
| Price talk: | Treasuries plus 80 bps area
|
| Cusip: | 961214FL2
|
|
|
| 2028 notes
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| Amount: | $1.25 billion
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| Issue: | Senior notes
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| Maturity: | Nov. 17, 2028
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| Coupon: | 5.535%
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| Price: | Par
|
| Yield: | 5.535%
|
| Spread: | Treasuries plus 103 bps
|
| Ratings: | Moody’s: A1
|
| Fitch: A+
|
| Price talk: | Treasuries plus 130 bps area
|
| Cusip: | 961214FN8
|
|
|
| 2033 subordinated notes
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| Amount: | $750 million
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| Issue: | Subordinated notes
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| Maturity: | Nov. 17, 2033
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| Coupon: | 6.82%
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| Price: | Par
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| Yield: | 6.82%
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| Spread: | Treasuries plus 233 bps
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Fitch: A-
|
| Price talk: | Treasuries plus 260 bps area
|
| Cusip: | 961214FP3
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