By Rebecca Melvin and Cristal Cody
Concord, N.H., Nov. 9 – Westpac Banking Corp. detailed $5.5 billion of notes sold in five tranches on Monday, according to FWP filings with the Securities and Exchange Commission.
The company sold senior notes due Nov. 18, 2024 (expected ratings: Aa3/AA-), including one part with a fixed-rate notes and one part with a floating-rate notes, and a third tranche of senior notes due 2028.
The smallest tranche was $750 million of floating-rate notes due Nov. 18, 2024, which priced at par with a coupon based on SOFR plus 30 basis points.
The corresponding fixed-rate tranche was $1.25 billion of 1.019% notes due Nov. 18, 2024, which priced at par with a spread of Treasuries plus 30 bps, low to talk in the 50 bps area.
The third tranche was for $1.25 billion of 1.953% notes due Nov. 20, 2028, which priced at par with a spread of 58 bps over Treasuries. A market source heard them talked in the 80 bps area over Treasuries on Monday morning.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., TD Securities (USA) LLC and Westpac Banking Corp. were joint active bookrunners of these tranches, and DBS Bank Ltd. was co-manager.
Westpac also sold two tranches of subordinated notes (expected ratings: Baa1/BBB+/A-), including $1.25 billion 3.02% notes due Nov. 18, 2036, which priced at par with a spread of Treasuries plus 153 bps, and $1 billion of 3.133% subordinated notes due Nov. 18, 2041, priced at par with a spread of Treasuries plus 123 bps.
Both tranches priced lower than talk, which was in the Treasuries plus 175 bps area and Treasuries plus 145 bps area, respectively.
The 2036 notes will start with a fixed interest rate that will reset in 2031. The notes are potentially redeemable at par on the reset date. In addition, the subordinated notes could be subject to conversion or possibly written off should there be a non-viability trigger event.
Citigroup, HSBC, JPMorgan, TD Securities and Westpac Banking are listed as the underwriters of the subordinated notes, and BMO Capital Markets Corp., ICBC Standard Bank plc are co-managers.
Proceeds will be used for general corporate purposes.
Westpac is one of the four major banks in Australia and one of the five major banks in New Zealand.
| Issuer: | Westpac Banking Corp.
|
| Issue: | Floating-rate notes, fixed-rate notes and subordinated notes
|
| Amount: | $5.5 billion
|
| Bookrunners: | Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, TD Securities (USA) LLC and Westpac Banking Corp.
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | Debevoise & Plimpton LLP (New York) and King & Wood Mallesons (Australia)
|
| Trade date: | Nov. 8
|
| Settlement date: | Nov. 18
|
| Distribution: | SEC registered
|
|
|
| 2024 floaters
|
| Amount: | $750 million
|
| Issue: | Floating-rate notes
|
| Maturity: | Nov. 18, 2024
|
| Co-manager: | DBS Bank Ltd.
|
| Coupon: | SOFR plus 30 bps
|
| Price: | Par
|
| Yield: | SOFR plus 30 bps
|
| Ratings: | Moody’s: Aa3
|
| S&P: AA-
|
| Cusip: | 961214EV1
|
|
|
| 2024 fixed-rate notes
|
| Amount: | $1.25 billion
|
| Issue: | Notes
|
| Maturity: | Nov. 18, 2024
|
| Co-manager: | DBS Bank Ltd.
|
| Coupon: | 1.019%
|
| Price: | Par
|
| Yield: | 1.019%
|
| Spread: | Treasuries plus 30 bps
|
| Ratings: | Moody’s: Aa3
|
| S&P: AA-
|
| Price talk: | Treasuries plus 50 bps area
|
| Cusip: | 961214EU3
|
|
|
| 2028 fixed-rate notes
|
| Amount: | $1.25 billion
|
| Issue: | Notes
|
| Maturity: | Nov. 20, 2028
|
| Co-manager: | DBS Bank Ltd.
|
| Coupon: | 1.953%
|
| Price: | Par
|
| Yield: | 1.953%
|
| Spread: | Treasuries plus 58 bps
|
| Ratings: | Moody’s: Aa3
|
| S&P: AA-
|
| Price talk: | Treasuries plus 80 bps area
|
| Cusip: | 961214EW9
|
|
|
| 2036 subordinated
|
| Amount: | $1.25 billion
|
| Issue: | Subordinated notes
|
| Maturity: | Nov. 18, 2036
|
| Co-managers: | BMO Capital Markets Corp. and ICBC Standard Bank plc
|
| Coupon: | 3.02% starting rate; resets Nov. 18, 2031 to five-year Treasury rate plus 153 bps
|
| Price: | Par
|
| Yield: | 3.02% starting rate
|
| Spread: | Treasuries plus 153 bps
|
| Call features: | Callable at par on reset date
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: A-
|
| Price talk: | Treasuries plus 175 bps area
|
| Cusip: | 961214EX7
|
|
|
| 2041 subordinated
|
| Amount: | $1 billion
|
| Issue: | Subordinated notes
|
| Maturity: | Nov. 18, 2041
|
| Co-managers: | BMO Capital Markets Corp. and ICBC Standard Bank plc
|
| Coupon: | 3.133%
|
| Price: | Par
|
| Yield: | 3.133%
|
| Spread: | Treasuries plus 123 bps
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: A-
|
| Price talk: | Treasuries plus 145 bps area
|
| Cusip: | 961214EY5
|
|
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