With the release of its interim results last Monday, Westpac said it was considering a new issue of hybrid notes to replace the WCTPA notes that are due to be called on June 30.On one hand, Westpac can thank Commonwealth Bank for the improved market conditions since the launch of the PERLS VIII issue in February. But on the other hand, Westpac may also blame CBA for the deterioration in market conditions following the PERLS VII issue that resulted in Westpac having to pay 400 basis points over the 90-day bank bill rate to get away its Capital Notes 3 issue last July.Capital Notes 3 (WBCPF) are trading below face value at A$98, which implies that investors want more than the 400 bps credit margin being paid. Indeed, the trading margin is 477 bps on the notes that are due to be called in March 2021.    There is $760 million of the WCTPA notes outstanding. Market speculation has it that Westpac will seek to replace the notes with a new note issue of $1 billion or more.?What remains unknown is what the term to the call date will be and what credit margin Westpac will offer on the notes.The WBCPC and WBCPD hybrid notes are due to be called in 2018 and 2019. The WBCPE and WBCPF notes are due to be called in 2022 and 2021, respectively.This leaves a hole in 2020 but it is too late to fill this year, as additional tier one capital must have a minimum non-call period of five years. Thus a 2023 call date seems likely, suggesting a seven-year term to call.This would not be unusual, the WCTPA notes were issued in 2006, but it would be longest dated issue since ANZ sold its eight-year term to call, Capital Notes 3 (ANZPF), in March last year. A seven-year term to call will demand a wide credit margin.The only comparable issue on the market is the ANZPF notes, with a March 2023 call date. The notes currently have a trading margin of 527 bps. Will Westpac have to pay a new issuer premium or will it be able to price any new note issue below secondary market levels, as CBA successfully did with the PERLS VIII notes?