Gilbert + Tobin has advised Westpac Banking Corporation (Westpac) on its $900 million offer of non-innovative tier 1 hybrids in conjunction with the redemption of existing St.George Bank hybrids.
The offer was initially issued to raise $700 million, but was structured to allow the bank to raise a greater or lesser amount. According to the bank, the offer was increased to $900 million due to strong demand.
Partners Janine Ryan and John Williamson-Noble led the transaction and were assisted by corporate transactions lawyer Nic Wright.
"The Westpac Stapled Preferred Securities II (Westpac SPS II) are expected to pay fully franked, non-cumulative, floating rate quarterly distributions. They are stapled securities consisting of a perpetual, unsecured, non-cumulative subordinated note and a preference share", Ryan said.
"The offer was complex because it consisted of a reinvestment offer to St.George hybrid holders, an offer made to former holders of St.George SAINTS and an offer to Westpac security holders and institutions", Williamson-Noble said.