Investing

Wesfarmers Ltd

Food & Staples Retailing

Wesfarmers Ltd

Latest price

$ 106.44

  • ASX code
    YTMWES
  • Maturity date
    28-Mar-2019
  • Capital structure
    Senior Unsecured
  • Coupon type
    FIXED
  • Coupon P.A
    6.25%
  • Issue Date
    28-Mar-2012
  • Next ex. distribution date
    19-Mar-2018
  • Next interest payment date
    28-Mar-2018
  • Payment frequency
    Semi-Annual

Issuer

Wesfarmers Limited 

Guarantor

Wesfarmers Limited and certain subsidiaries

Base terms

$4,000,000,000 Debt Issuance Programme dated 30 August 2011

Pricing supplement

Dated 27 March 2012

Nature of the bonds

The Bonds are, unsubordinated and unsecured obligations of the Issuer and rank at least equally with all other unsecured and unsubordinated obligations of the Issuer except liabilities mandatorily preferred by law.

Issue size

A$500,000,000

Interest rate

6.25% per annum, payable semi-annually (in two coupons of 3.125%) in arrears on 28 March and 28 September in each year, including the Maturity Date.

Bond denomination

$100,000

Repayment at the maturity date

On the Maturity Date, Bondholders are scheduled to receive the Face Value and the final payment of Interest for the last Interest Period.

Key benefits

Key benefits include:

  • interest paid semi-annually in arrears;
  • interest paid as 100% cash;
  • interest is not deferrable nor are interest payments discretionary;
  • rank equally with all other senior and unsecured creditors of the Issuer.

Key risks

The value of an investment in Wesfarmers Bonds may fluctuate due to various factors, including investor perceptions, worldwide economic conditions, interest rates, debt market conditions and factors that may affect Wesfarmers’ financial performance. The following risks may also affect an investment in Wesfarmers Bonds:

  • Wesfarmers’ financial performance and rating – a change in Wesfarmers’ financial condition or rating may impact on the market value and the transferability of the Bonds;
  • Currency risk – the Issuer is subject to some exchange rate risk, which may affect the costs of imports or the proceeds from exports and negatively affect its financial performance;
  • Commodity price risk – the Issuer’s profitability depends, in part, on commodity prices in a variety of industries including coal, gas, chemicals and fertilisers, all of which can fluctuate in price and impact on the Issuer’s financial performance;
  • Liquidity risk – an active secondary market in respect of the Bonds may never be established or may be illiquid and this would adversely affect the value at which an investor could sell the Bond;
  • Interest rate risk – the value of Fixed Rate Bonds may be adversely affected by movements in market interest rates;
  • Litigation risks – risks relating to litigation and regulatory actions;
  • Default risk – if an event of default occurs under the Bonds, or the Issuer fails to perform any obligation in relation to the Bonds, such event or failure may impact on the value of an investment in the Bonds, the transferability of the Bonds and the ability of a holder to recover amounts due under the Bonds; In assessing potential default risk, a bondholder should consider the periodic and continuous disclosures made by the Issuer.

Negative pledge

Wesfarmers will not create any Security Interest on the Property of the Issuer or any Subsidiary or on any shares of stock in, or of any Subsidiary, in each case, to secure any present or future Indebtedness without effectively providing that the Bonds shall be secured equally and rateably with such secured Indebtedness, so long as such Indebtedness shall be so secured. Exceptions include:

  • any Security Interest existing at the Issue Date;
  • a Security Interest arising by operation of law provided in the ordinary course of business;
  • any Security Interest which exists at the time of acquisition on or over any asset acquired;
  • any Security Interest given in the course of Project Financing;
  • any Security Interest which in an aggregate amount of all other Indebtedness of Wesfarmers and its Subsidiaries does not at any time exceed 15 per cent. of Total Assets.

Early redemption by issuer

Yes, for tax reasons 

Early redemption by bondholder

If there is a Change of Control and a ratings downgrade of the Issuer below a certain rating, then holders of the Bonds can “Put” the Bonds back to the Issuer at a price of 101%. 

Events of default

Events of Default include:

  • Failure to Pay: Applicable with a cure period of 30 days in respect of interest payments;
  • Breach of Other Obligation: Applicable;
  • Cross Default: Applicable, Threshold Amount is A$50,000,000.
  • Enforcement or Attachment: Applicable, with a Threshold Amount of A$50,000,000;
  • Loss of Licence/Authorisation: Applicable
  • Enforcement or Attachment: Applicable, with a Threshold Amount of A$50,000,000;
  • Voluntary Winding Up: Applicable;
  • Insolvency: Applicable;
  • Scheme of Arrangement/Compromise: Applicable.

View all XTBs

Cash Flow Tool

Build an XTB portfolio and map your cash flows

Build a portfolio

Yield Calculator

Calculate the yield for fixed or floating coupon XTBs

Calculate now

Top stories

Shielding retirement savings: The time

Read Article
Education

XTBs defy the gravitational pull

Read Article
Education

Top 10 economic indicators on

Read Article
Education

Hybrids no contest for bonds

Read Article
Education