Shareholder information
Westpac Stapled Preferred Securities (Westpac SPS II)
- Introduction
- What are Westpac SPS II?
- Distributions on Westpac SPS II
- Distribution payment and record dates
- Distribution payment history
- Information for former St.George hybrid holders
- Further Enquiries
- ASX announcements
Introduction
This information on this website page is for Australian residents only.
The Offer for Westpac SPS II is closed. On 31 March 2009, Westpac issued 9,083,278 Westpac Stapled Preferred Securities II (Westpac SPS II), at an issue price of A$100 each, raising approximately A$908 million.
Holding statements confirming the number of Westpac SPS II issued to successful applicants were mailed on 7 April 2009. The Westpac SPS II trade under the ASX code "WBCPB". Investors who trade their Westpac SPS II before receiving their holding statement do so at their own risk.
What are Westpac SPS II?
Each Westpac SPS II is a stapled security consisting of a:
- Perpetual, unsecured, non-cumulative subordinated Note issued by Westpac's New York branch; stapled to
- A Preference Share issued by Westpac.
Westpac SPS II are subordinated, unguaranteed securities, which are expected to pay fully franked, non-cumulative floating rate, quarterly distributions. Westpac SPS II are listed on the Australian Securities Exchange (ASX) under the code WBCPB and can be traded like any other securities listed on the ASX.
On 30 September 2014 ("the Initial Mandatory Conversion Date"), it is expected that Westpac SPS II will either be:
- Converted into Westpac Ordinary Shares (subject to the satisfaction of certain Conversion Conditions); or
- Transferred to a Nominated Party at the election of Westpac for cash, such that you will receive A$100 for each Westpac SPS II from the Nominated Party.
Further details on Westpac SPS II, including the complete Note Terms and Preference Share Terms, are included in the Prospectus dated 2 March 2009.
Download the Westpac SPS II Prospectus for reference purposes only.
Distributions on Westpac SPS II
Westpac SPS II offer holders preferred, non-cumulative and floating rate distributions. Westpac SPS II distributions are expected to be fully franked and accordingly investors are expected to receive a combination of cash distributions and franking credits. However, your ability to use franking credits will depend on your individual tax position.
Distributions are calculated as follows:
(Distribution Rate x Issue Price x N) divided by 365.
The Distribution Rate is a floating rate and will be set on the first Business Day of each Distribution Period using the following formula:
(Bank Bill Rate + Margin) x (1 - Tax Rate).
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The margin is 3.80%
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The Tax Rate is the Australian corporate tax rate applicable to the franking account of Westpac as at the Distribution Payment Date expressed as a decimal in the formula, 0.30
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The issue price is $100.00 per Westpac SPS II
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N = the number of days in the Distribution Period
The 90 day Bank Bill Rate will be set on the first day of each Distribution Period.
Distribution payment and record dates
| Distribution payment dates | Relevant record dates |
|---|---|
| 2 July 2012# | 22 June 2012 |
| 2 October 2012# | 22 September 2012 |
| 31 December 2012 | 23 December 2012 |
Distribution payment history
| Distribution Payment Date | Distribution rate per annum | Cash amount of Distribution per Westpac SPS II | Number of days in the Distribution Period |
|---|---|---|---|
| 2 July 2012 | 5.6420%* | $1.4066* | 91 |
| 2 April 2012 | 5.7493% | $1.4334 | 91 |
| 3 January 2012 | 5.9698% | $1.5047 | 92 |
| 30 September 2011 | 6.1437% | $1.5485 | 92 |
| 30 June 2011 | 6.0818% | $1.5163 | 91 |
| 31 March 2011 | 6.1320% | $1.5120 | 90 |
| 31 December 2010 | 6.076% | $1.5315 | 92 |
| 30 September 2010 | 6.048% | $1.5244 | 92 |
| 30 June 2010 | 5.7528% | $1.4343 | 91 |
| 31 March 2010 | 5.5370% | $1.3653 | 90 |
| 31 December 2009 | 5.0073% | $1.2621 | 92 |
| 30 September 2009 | 4.8720% | $1.2280 | 92 |
| 30 June 2009 | 4.8568% | $1.2242 | 92 |
*Expected 02/07/2012 distribution
#The scheduled Distribution Payment Date is not a Business Day. In accordance with the terms, the Distribution Payment will be made on the next Business Day.
How to treat Westpac SPS II distributions in your individual tax return
Investors in Westpac SPS II should consult their own professional tax advisers regarding the consequences of acquiring, holding and disposing of Westpac SPS II in light of their particular circumstances, including how the distributions should be treated in their tax returns.
However, it is expected that for Australian resident investors, while the Notes remain stapled to the Preference Shares, distributions on the Westpac SPS II should be treated as non-share dividends and must be included in assessable income.
For Westpac SPS II investors required to prepare and lodge an individual tax return, the distributions on Westpac SPS II should generally be shown as income in the section entitled “Dividends”. The amount of distributions, excluding any franking credits, should be shown as the “Franked amount”. The amount of franking credits attached to the distributions should be shown as the “Franking credit”. In this way, Westpac SPS II distributions and any franking credits attached should generally be treated in the same way as dividends and franking credits received on an investment in Westpac ordinary shares.
The ATO issued a class ruling on 22 April 2009 that applies to investors who acquired Westpac SPS II from the Initial Purchaser under the Prospectus dated 2 March 2009. View a copy of the Class Ruling.
Information for former St.George hybrid holders
In accordance with the Exchange Notice issued by St.George Bank Limited (St.George) on 2 March 2009, St.George SPS, St.George CPS and St.George CPS II (St.George Hybrids) were redeemed by St.George on 31 March 2009 for their face value of $100 each. A final dividend for each St.George Hybrid was also paid on 31 March 2009. Transaction confirmation statements and dividend advices were mailed to St.George Hybrid holders on 31 March 2009.
A copy of the Exchange Notice and taxation summary of the income tax implications of redemption of St.George Hybrids is attached directly below.
Exchange Notice and Taxation Summary (PDF440kb)
Further Enquiries
If you have any questions regarding the Westpac SPS II, please call the Westpac SPS II Information Line on 1300 551 909 Monday to Friday between 8.30am and 5.30pm (Sydney time).
ASX announcements
- Media release on Westpac SPS II Announcement (PDF 50kb)
- Media release on Westpac SPS II Bookbuild Results (PDF 39kb)
- Media release Westpac SPS II - offer successfully closed (PDF 44kb)
- Media release Westpac SPS II Westpac confirms issuance of Westpac SPS II (PDF 44kb)
Nothing contained on this website or in the Prospectus constitutes financial product advice and this website, and the Prospectus have been prepared without taking into account your investment objectives, financial situation or particular needs. If, after reading this website and the Prospectus, you are unclear or have any questions, then you should consult your financial adviser or other professional adviser.
The information set out here is for Australian Residents only. Terms used on this site have the same meaning as those in the Westpac SPS II Prospectus dated 2 March 2009 and lodged with the Australian Securities and Investments Commission on that date.
Westpac SPS II have not been, and will not be, registered under the US Securities Act, and are not being offered or sold in the United States or to, or for the account or benefit of, a US Person. Therefore Westpac SPS II may not be sold, directly or indirectly, in the United States or to, or for the account or benefit of, US Persons, except in accordance with an available exemption from the registration requirements of the US Securities Act.
Things you should know
- 1.This will be the Australian corporate tax rate applicable to Westpac's franking account as at the Distribution Payment Date. As at the date of the Prospectus, the relevant rate was 30%.
- 2.The potential value of the franking credits does not accrue to you at the same time as you receive the cash distributions and a holder's ability to use franking credits will depend on their individual tax positions.
- 3.The calculation of the Distribution Rate will be rounded to four decimal places. The Distribution Rate above is for illustrative purposes only and does not indicate the actual Distribution Rate. It is not a guarantee or forecast of the actual Distribution Rate that may be achieved. The actual Distribution Rate may be higher or lower than this and will vary each quarter depending on the applicable 90 day Bank Bill Rate and Tax Rate.
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