By Paul A. Harris
St. Louis, Feb. 24 - Woodside Finance Ltd., the financing arm of Australia's Woodside Petroleum Ltd., priced $1 billion of notes (Baa1/A-) in two tranches on Tuesday, according to market sources.
The deal included $400 million of 8.125% five-year notes that priced to yield 625 basis points more than Treasuries, and $600 million of 8.75% 10-year notes that priced to yield 612.5 bps over Treasuries.
The deal had been in the market all day Monday, according to a source, who added that price guidance marched significantly higher throughout that session. Initial guidance came in the context of a mid-500 bps spread. One account reported hearing guidance as low as 500 bps area.
Late Tuesday morning, New York time, official talk surfaced. The five-year paper was talked at Treasuries plus 625 bps area, while the 10-year talk was Treasuries plus 600 bps to 625 bps. Hence the five-year paper came on top of talk, while the 10-year paper came in the middle of talk.
The five-year paper was discounted to 99.969 and yields 8.133%.
The 10-year paper was discounted to 98.847 and yields 8.925%.
Credit Suisse, JPMorgan and UBS Investment Bank were the managers.
The notes are guaranteed by Woodside Petroleum Ltd. and Woodside Energy.
Proceeds will be used for general corporate purposes, including the funding of Woodside Petroleum's capital expenditures program.
The issuer is based in Perth, Australia.
| Issuer: | Woodside Finance Ltd.
|
| Total amount: | $1 billion
|
| Managers: | Credit Suisse, JPMorgan, UBS Investment Bank
|
| Trade date: | Feb. 24
|
| Settlement date: | March 3
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | March 1, 2014
|
| Coupon: | 8.125%
|
| Price: | 99.969
|
| Yield: | 8.133%
|
| Spread: | 625 bps
|
| Price talk: | Treasuries plus 625 bps area
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | March 1, 2019
|
| Coupon: | 8.75%
|
| Price: | 98.847
|
| Yield: | 8.925%
|
| Spread: | 612.5 bps
|
| Price talk: | Treasuries plus 600 to 625 bps
|
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