Westpac Announces Pricing of Tender Offer for Any and All of its 3.25% Guaranteed Senior Notes due December 16, 2011

SYDNEY, Jan. 11, 2011 /PRNewswire/ -- Westpac Banking Corporation announced today the determination of the Purchase Price (as defined below) for its previously announced cash tender offer for any and all of its 3.25% Guaranteed Senior Notes due December 16, 2011 (the "Notes") outstanding in an aggregate principal amount of US$3 billion.  The tender offer is being made pursuant to an offer to purchase and related letter of transmittal, each dated January 3, 2011, which set forth a more complete description of the terms and conditions of the tender offer, including the calculation of the Purchase Price. Holders of the Notes are urged to read the offer to purchase and the related letter of transmittal carefully before making any decisions with respect to the tender offer.

The tender offer will expire at 12:00 midnight, New York City time, on January 11, 2011 (the "Expiration Time") unless extended or earlier terminated.  To be eligible to receive the Purchase Price, holders of the Notes must validly tender and not validly withdraw their Notes on or prior to the Expiration Time. Tendered Notes may be withdrawn at any time on or prior to, but not after, the Expiration Time.

Westpac will pay holders of the Notes that validly tender and do not validly withdraw their Notes prior to the Expiration Time an amount equal to US$1,027.21 per US$1,000 principal amount of Notes (the "Purchase Price"). In addition to the Purchase Price, Westpac will also pay accrued and unpaid interest on Notes purchased to, but not including, the settlement date. Westpac expects the settlement date to be January 12, 2011, the next business day following the Expiration Time.

The Purchase Price was determined by reference to a fixed spread of 0 basis points plus the bid-side yield to maturity of the 1.125% U.S. Treasury Notes due December 15, 2011, calculated by J.P. Morgan Securities LLC, as global dealer manager, at 11:00 a.m., New York City time, today, January 11, 2011. The table below sets forth some of the pricing terms for the Notes.

The tender offer is subject to the satisfaction or waiver of certain conditions set forth in the offer to purchase.

J.P. Morgan Securities LLC is serving as global dealer manager and Westpac Banking Corporation is serving as co-dealer manager outside the United States, and Global Bondholder Services Corporation is serving as the depositary and information agent for the tender offer.

Neither the offer to purchase nor the related letter of transmittal has been lodged with the Australian Securities and Investments Commission and the tender offer is only available to persons in Australia to whom an offer or invitation can be made without disclosure under Parts 6D.2 or 7.9 of the Corporations Act 2001 of Australia.

Requests for documents may be directed to Global Bondholder Services Corporation toll-free at (866) 952-2200 or in writing at 65 Broadway – Suite 404, New York, New York 10006, Attention: Corporate Actions.  Questions regarding the tender offer in the United States may be directed to J.P. Morgan Securities LLC at (866) 834-4666 (toll-free) or (212) 834-2494 (collect) and by investors outside the United States to J.P. Morgan Securities LLC at the numbers above or to Westpac Banking Corporation at + 61 2 8253 4574.

SOURCE Westpac Banking Corporation