New Issue: Westpac Capital Notes 6

On 12 November 2018, Westpac Banking Corporation (Westpac) launched an offer for Westpac Capital Notes 6 (expected ASX Code: WBCPI). The offer size is guided to be $750 million, with the bank retaining the ability to raise more or less.

These securities are structured as perpetual, subordinated, unsecured, redeemable, convertible notes. Distributions are expected to be discretionary, non-accumulative, floating rate, fully franked, and paid on a quarterly basis in arrears until converted or redeemed. The Notes will be issued on 18 December 2018 and the margin on this security is expected to be set between 3.70% - 3.90% p.a. above 90-Day BBSW.

This security has no fixed maturity date but is scheduled for mandatory conversion into Westpac ordinary shares on 31 July 2026, or later when conversion conditions have been satisfied. At the issuer’s discretion, and subject to approval by APRA, the Notes may be redeemed, transferred or converted on 31 July 2024.

Summary details of the transaction are listed in the table below:

Product Type

Capital Note

Last Price

$100.00

Issue Size*

[$750,000,000]

Accrued

$0.00

Par Value

$100.000

Capital Price

$100.000

Fixed / Floating

Floating

Running Yield**

[5.641% - 5.841%]

Payment Frequency

Quarterly

Yield to Call***

[6.336% - 6.536%]

Current Distribution**

[5.641% - 5.841%]

Trading Margin***

[3.700% - 3.900%]

Issue Margin***

[3.700% - 3.900%]

Optional Call Date

26 July 2024

Franking Credits Inclusive

Yes

Legal Final Maturity

ASX Listed

Yes (Prospective ASX Code: WBCPI)

Next Ex-Date

[To Be Confirmed]

Convertible

Yes

Next Payment Date

[18 March 2019]

GICS Sector

Banks

Next Cash Distribution

[To Be Confirmed]

*Issue size is subject to change but is expected to be $750 million. **Based on prospective issue margin plus 90-Day BBSW of 1.941%. ***Based on prospective issue margin of 3/70% and an interpolated swap rate to the call of 2.6364 and an expected call date of 31 July 2024. All pricing as of close 9 November 2018.

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