By Cristal Cody
Tupelo, Miss., July 16 – Westpac Banking Corp. priced $2.25 billion of subordinated notes (Baa1/BBB/A+) in two tranches on Tuesday, according to a market source.
The company sold $1.25 billion of 4.11% notes due July 24, 2034 at a spread of 200 basis points over Treasuries.
Westpac Banking priced $1 billion of 4.421% notes due July 24, 2039 at a spread of Treasuries plus 180 bps.
Both tranches priced on the tight side of guidance and better than initial talk.
BofA Securities, Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Westpac Banking were the bookrunners.
The Sydney, Australia-based bank plans to use the proceeds for general corporate purposes.
| Issuer: | Westpac Banking Corp.
|
| Amount: | $2.25 billion
|
| Description: | Subordinated notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Westpac Banking Corp.
|
| Co-managers: | RBC Capital Markets, LLC and TD Securities (USA) LLC
|
| Trade date: | July 16
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Fitch: A+
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
|
|
| Notes due 2034
|
| Amount: | $1.25 billion
|
| Maturity: | July 24, 2034
|
| Coupon: | 4.11%
|
| Spread: | Treasuries plus 200 bps
|
| Call feature: | July 2029 at par
|
| Price guidance: | Treasuries plus 205 bps area, plus or minus 5 bps; initial talk at Treasuries plus 215 bps area
|
|
|
| Notes due 2039
|
| Amount: | $1 billion
|
| Maturity: | July 24, 2039
|
| Coupon: | 4.421%
|
| Spread: | Treasuries plus 180 bps
|
| Call feature: | None
|
| Price guidance: | Treasuries plus 185 bps area, plus or minus 5 bps; initial talk at Treasuries plus 205 bps area
|
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