BASIS POINT-Woodside, Woolworths seek US$300 mln in loans

SYDNEY, March 4 (Reuters Basis Point) - Australian firms
Woodside Petroleum Ltd (WPL.AX) and Woolworths Ltd (WOW.AX) are
both planning to raise $300 million in loans targeted at Asian
investors, banking sources said.

Mandated lead arrangers on the Woodside deal are ANZ and
Bank of Tokyo-Mitsubishi UFJ.

The best-efforts loan, which launched this week, one week
after Woodside sold $1 billion of 144a bonds, will roadshow in
Hong Kong, Singapore, Taiwan and Tokyo, and target Asian banks,
according to one of the sources.

The deal, which banks can fund in euro, U.S. dollars or
yen, is priced at 250 basis points (bp) all-in, said the
sources.

Woodside's bond offering last week was the first issue by
an Australian non-financial corporate since October 2008.

The offer comprised $400 million of five-year notes priced
at 625 bp over US Treasuries and $600 million of 10-year notes
at 612.5 bp over US Treasuries, Reuters reported.

Woodside has a company rating of A- with a negative outlook
by Standard & Poor's.

Australian supermarket chain Woolworths Ltd (WOW.AX) is
also eyeing a $300 million three-year loan.

That best-efforts deal, arranged by ANZ and Citigroup, is
also expected to pay 250 bp all-in, the sources said.

The facility, which is also targeting banks in Asia,
comprises revolving credit and term loan tranches.

Woolworths, rated A- with a stable outlook by S&P, will use
the funds, which can be drawn in euro, US$ and yen, for general
corporate purposes.

Some market participants said the deals were likely to
generate strong interest in Asia.

"Asian lenders like Australia which is a triple A rated
country that is close enough to be relevant," said a loan
banker.

He added that pricing on the two facilities was lower than
on deals for similar borrowers from Asia and Europe, perhaps on
the basis that the Australian economy was holding up better
compared to other countries.

An A rated borrower in Europe and the U.S. could expect to
pay an all-in of between 300-350bp, according to loan bankers.

The Asia Pacific loan market also has the advantage of
being a traditional bank market, whereas institutional funds,
which have typically been hit by losses from the U.S. subprime
mortgage crisis, make up at least 60 percent of loan markets in
Europe and the US, loan bankers said.
(Reporting by Sharon Klyne)