By Aleesia Forni
New York, Nov. 17 – Westpac Banking Corp. sold a $3.75 billion three-tranche offering of senior notes (Aa2/AA-/AA-) in fixed- and floating-rate parts due 2018 and 2020 on Tuesday, according to a market source.
A $1 billion 1.95% tranche of three-year notes sold at 99.991 to yield 1.953%, or Treasuries plus 77 basis points.
The notes came at the tight side of the Treasuries plus 80 bps area guidance. Initial talk was in the Treasuries plus 90 bps area.
The company also sold a $1 billion floating-rate piece of three-year notes at par to yield Libor plus 74 bps.
The notes were talked at the Libor equivalent to the three-year fixed-rate tranche.
And $1.75 billion of 2.6% five-year notes sold at 99.925 to yield 2.616%. The five-year tranche sold with a 97 bps spread over Treasuries.
Guidance was in the Treasuries plus 100 bps area following initial talk in the Treasuries plus 110 bps area.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners.
Proceeds from the offering will be used for general corporate purposes.
The banking organization is based in Sydney, Australia.
| Issuer: | Westpac Banking Corp.
|
| Issue: | Senior notes
|
| Amount: | $3.75 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Trade date: | Nov. 17
|
| Ratings: | Moody’s: Aa2
|
| Standard & Poor’s: AA-
|
| Fitch: AA-
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | Nov. 23, 2018
|
| Coupon: | 1.95%
|
| Price: | 99.991
|
| Yield: | 1.953%
|
| Spread: | Treasuries plus 77 bps
|
| Price guidance: | Treasuries plus 80 bps area, tightened from Treasuries plus 90 bps area
|
|
|
| Three-year floaters
|
| Amount: | $1 billion
|
| Maturity: | Nov. 23, 2018
|
| Coupon: | Libor plus 74 bps
|
| Price: | Par
|
| Yield: | Libor plus 74 bps
|
| Price guidance: | Libor equivalent to three-year fixed-rate notes
|
|
|
| Five-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | Nov. 23, 2020
|
| Coupon: | 2.6%
|
| Price: | 99.925
|
| Yield: | 2.616%
|
| Spread: | Treasuries plus 97 bps
|
| Price guidance: | Treasuries plus 100 bps area, tightened from Treasuries plus 110 bps area
|
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