On 4 November 2020, Westpac Banking Corporation (ASX: WBC) launched an offer for Westpac Capital Notes 7 (ASX: WBCPJ), to raise $750 million, with the ability to raise more or less. The offer is accompanied by a Reinvestment Offer for holders of Westpac Capital Notes 3 (ASX: WBCPF).
These securities are structured as unsecured, subordinated, perpetual, convertible notes. Distributions are expected to be discretionary, non-cumulative, floating rate, fully franked, and paid on a quarterly basis in arrears until converted or redeemed. The margin is guided at 3.40% to 3.60% p.a. above 90-day BBSW.
WBCPJ are ASX-listed AT1 securities, similar in structure to WBCPF. This security has no fixed maturity date but is scheduled for mandatory conversion into WBC ordinary shares on 22 March 2029, or later, when conversion conditions have been satisfied. WBC can, subject to approval by APRA, redeem or resell the Notes for cash at face value or convert the Notes into WBC ordinary shares on 22 March 2027, subject to conversion conditions.
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