The transaction highlights continued investor demand for Australian bank hybrid securities
The additional tier-1 capital securities, which are called “Westpac Capital Notes 5,” seek to raise up to $750m, with the provision to raise more or less. The bank also announced a reinvestment offer for eligible Westpac CPS holders to apply to sell some or all of their Westpac CPS to reinvest in the offer.
Allens acted for Westpac, while HSF acted for joint lead managers Westpac Institutional Bank, ANZ Securities, Commonwealth Bank of Australia, J.P. Morgan Australia, Morgans Financial, National Australia Bank, and UBS AG. HSF also acted for UBS AG as the nominated party under the reinvestment offer.
Partner Stuart McCulloch led the Allens team. He was supported by consultant Larry Magid, senior tax counsel Judith Taylor, senior associate Addison Ma, and associate Stephanie Kam.
The HSF team was led by Philippa Stone, the firm’s global co-head of equity capital markets. The senior partner was supported by senior associate Charlotte Cameron and solicitor Michael Burrell.
HSF has recently acted in numerous major bank hybrids. The Westpac deal highlights the continued demand for Australian bank hybrid securities, Stone said.