UPDATE 1-Westfield sells $2 bln notes to over 200 investors

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SYDNEY, Aug 27 (Reuters) - Westfield Group (WDC.AX), the
world's biggest shopping mall landlord by market value, has
raised $2 billion of notes in two parts in the United States to
refinance debt, it said on Thursday.

The offer attracted more than 200 investors including fund
managers, insurance companies and banks, in an issue that was
many times oversubscribed, a source familiar with the terms
said.

More than 70 percent came from U.S.-based investors.

Strong demand allowed Westfield to tighten the margin to
350 basis points (bps) over U.S. Treasuries on both tranches
from around 375 bps when the issue was launched, the source
said.

It was Westfield's second such offer this year, following a
$700 million five-year note issue completed in May at 548.9 bps
over U.S. Treasuries.

Those bonds have since then tightened to around 335/305
bps, reflecting a significant improvement in credit markets and
investor sentiment worldwide since May.

The new Westfield issue was quickly executed and took
advantage of the group's solid results this week, the source
said.

Westfield reported a 12 percent rise in first-half
operating earnings to A$1.04 billion ($868 million), in line
with market forecasts. By comparison, its biggest U.S. rival,
Simon Property Group (SPG.N) reported a 6.8 percent fall in
first-half funds from operations.

Bank of America, Citigroup, Deutsche Bank and UBS were the
active joint bookrunning managers for the sale. Credit Suisse
and Royal Bank of Scotland were passive joint bookrunning
managers for the sale.

Deal details, according to IFR, a Thomson Reuters service,
are as follows:

BORROWER: WEA FINANCE LLC/WT FINANCE (AUSTRALIA)

FIRST TRANCHE:

AMT $750 MLN COUPON 5.75 PCT MATURITY 9/2/2015

TYPE SNR NOTES ISS PRICE 99.028 FIRST PAY 3/2/2010

MOODY'S A2 YIELD 5.945 PCT SETTLEMENT 9/2/2009

S&P A-MINUS SPREAD 350 BPS PAY FREQ SEMI-ANNUAL

FITCH N/A MORE THAN TREAS MAKE-WHOLE CALL 50
BPS

SECOND TRANCHE:

AMT $1.25 BLN COUPON 6.75 PCT MATURITY 9/2/2019

TYPE SNR NOTES ISS PRICE 98.696 FIRST PAY 3/2/2010

MOODY'S A2 YIELD 6.933 PCT SETTLEMENT 9/2/2009

S&P A-MINUS SPREAD 350 BPS PAY FREQ SEMI-ANNUAL

FITCH N/A MORE THAN TREAS MAKE-WHOLE CALL 50
BPS
(Reporting by Cecile Lefort)