By Andrea Heisinger
New York, July 10 - Westpac Banking Corp. sold $2 billion of covered bonds (Aaa/AAA) in two tranches on Tuesday, a market source said.
The $500 million of three-year floating-rate notes priced at par to yield Libor plus 80 basis points.
A $1.5 billion tranche of 1.375% three-year notes sold at 99.962 to yield 1.388% with a spread of mid-swaps plus 80 bps or Treasuries plus 102.6 bps.
Both notes are non-callable.
The tranches were priced under Rule 144A and Regulation S.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Westpac Securities were the bookrunners.
Westpac was last in the U.S. bond market with a $1 billion issue of five-year notes on Nov. 17, 2011.
The financial services and banking provider is based in Sydney, Australia.
| Issuer: | Westpac Banking Corp.
|
| Issue: | Covered bonds
|
| Amount: | $2 billion
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Westpac Securities
|
| Distribution: | Rule 144A, Regulation S
|
| Trade date: | July 10
|
| Settlement date: | July 17
|
| Ratings: | Moody's: Aaa
|
| Fitch: AAA
|
|
|
| Three-year floaters
|
| Amount: | $500 million
|
| Maturity: | July 17, 2015
|
| Coupon: | Libor plus 80 bps
|
| Price: | Par
|
| Yield: | Libor plus 80 bps
|
| Call: | Non-callable
|
|
|
| Three-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | July 17, 2015
|
| Coupon: | 1.375%
|
| Price: | 99.962
|
| Yield: | 1.388%
|
| Spread: | Mid-swaps plus 80 bps, Treasuries plus 102.6 bps
|
| Call: | Non-callable
|
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