As part of the announcement regarding a new capital note (ANZ Capital Notes 5), ANZ has outlined the options available to holders of ANZ CPS3 hybrids (ASX code: ANZPC).
Under the (revised) terms of the CPS3 securities, holders who were registered on 11 August may
- reinvest the face value of their holdings into the new capital notes
- sell into a buy-back offer
- do nothing and continue to hold their securities.
In order to be able to offer the buy-back and re-investment options to CPS3 holders, ANZ had to amend the CPS3 terms so as to allow a pro rata dividend payment to all CPS3 holders, including eligible CPS3 holders who participate in the buy-back facility. The pro rata dividend will be paid for the period from 1 September 2017 to the buy-back settlement date which is expected to be 28 September 2017. To be eligible for the pro rata dividend, holders will need to be registered on the expected record date on 20 September 2017.
Holders who wish to keep their CPS 3 securities may do so until they are sold on the ASX or ANZ exchanges them under the CPS 3 rules. ANZ has stated it has “not made any decision how it will deal with the CPS3 which are not bought-back under the Buy-Back Facility” but it points out the factors which it would take into account if it were to do so. These factors include APRA approval and replacement with “tier 1 capital of the same or better quality” unless APRA deems otherwise.
These CPS3 holders who are still holding their CPS3 in March 2018 will receive a dividend calculated from 28 September 2017 (or the buy-back settlement date if it differs) instead of 1 September 2017. Other holders who become registered after 11 August 2017 will be in the same position as holders who decide not to reinvest into the new capital notes nor sell into the buy-back offer.