A$ Medium Term Note Programme dated 25 February 2011
Dated 19 March 2012
Nature of the bonds
The Bonds will be a direct and unconditional obligation of the Issuer. The Bonds will be issued on an unsubordinated basis and as among themselves, the Bonds of each series will rank pari passu and will be payable rateably without any preference or priority.
6.00% per annum, payable semi-annually (in two coupons of 3.00%) in arrears on 21 March and 21 September in each year, including the Maturity Date.
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 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.
The value of an investment in Woolworths Bonds may fluctuate due to various factors, including investor perceptions, worldwide economic conditions, interest rates, debt market conditions and factors that may affect Woolworths’ financial performance. The following risks may also affect an investment in Woolworths Bonds:
- Woolworths’ financial performance and rating – a change in Woolworths’ 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;
- 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 Bonds;
- 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.
The Issuer will not create any Security Interest, other than a Permitted Security Interest, upon its present or future assets or revenues or those of any of its Subsidiaries as security for any Relevant Indebtedness, unless the Issuer grants a Security Interest in respect of the Bonds which will result in such obligations being secured equally and rateably in all respects so as to rank pari passu with the applicable Relevant Indebtedness.
Permitted Security Interest includes:
(a) any Security Interest arising by operation of law or any right of set-off;
(b) any Security Interest which exists at the time of certain acquisitions,
(c) any Security Interest given in relation to certain limited-recourse financing, securitisation or other like arrangement where the payment obligations in respect of the indebtedness secured by the relevant Security Interest are to be discharged from the revenues generated by assets over which such Security Interest is created (including, without limitation, receivables); or
(d) any other Security Interest created or outstanding on or over assets, but the aggregate outstanding, principal capital or nominal amount secured by all Security Interests created or outstanding under this paragraph or over assets does not at any time exceed 5% of Total Tangible Assets;
Relevant Indebtedness means any present or future indebtedness of the Issuer in the form of, or represented by, bonds, notes, debentures, loan stock, certificates of deposit, bills of exchange, transferable loan certificates or other securities which are capable of being listed, quoted, ordinarily dealt in or traded on any recognised market, not being indebtedness incurred in the ordinary course of trading; and
Total Tangible Assets means the aggregate amount of all assets as shown in the most recent annual audited consolidated accounts of the Issuer or half yearly audited consolidated accounts of the Issuer (whichever is most recent).
Early redemption by issuer
Yes, for tax reasons
Events of default
Events of Default include:
- Failure to Pay: Applicable with a cure period of 5 Business Days (in the case of interest) or 2 Business Days (in the case of principal);
- Breach of Other Obligations: Applicable, with a cure period of 30 days;
- Cross Default: Applicable with a Threshold Amount of A$100,000,000
- Enforcement or Attachment: Applicable;
- Insolvency: Applicable;
- Administration: Applicable;
- Cessation of Business: Applicable.