Filed Pursuant to Rule 424(b)(3)
File No. 333-44256
PROSPECTUS
WESTERN RESOURCES, INC.
DIRECT STOCK PURCHASE PLAN
This plan is being offered to shareholders of Western Resources, Inc.
Our Direct Stock Purchase Plan provides investors with a convenient and
economical method of purchasing shares of Western Resources common stock, which
is listed on the New York Stock Exchange under the symbol "WR."
The plan features include:
o You may reinvest all or a portion of your cash dividends in additional
shares of common stock.
o You may purchase additional shares of common stock up to $10,000 per
month, with a minimum investment of $50. Optional cash investments in
excess of $10,000 may be made with prior written permission from us.
o Persons not presently owning shares of common stock may become
participants by making an initial cash investment for the purchase of
common stock of not less than $250 and not more than $10,000 per month,
without prior written permission from us.
o Holders of common stock held by brokers or nominees may participate in the
plan. Brokers or nominees may reinvest dividends and make optional cash
investments on behalf of beneficial owners.
o Common stock purchased from us may be priced at a discount from recent
market prices. The discount currently is 3 percent, but may vary from 0 to
10 percent. No discount will be available for common stock purchased in
the open market or privately negotiated transactions.
o Dividends are calculated on all full and fractional shares of common stock
in the plan.
o You may deposit your common stock certificates, at no cost, into the plan
for safekeeping.
o You may direct us to transfer, at no cost, all or a portion of your shares
of common stock in the plan.
o You may sell shares held by the plan.
The price of shares of common stock purchased under the plan will be
either (a) the weighted average cost of all shares purchased for the applicable
investment date including brokerage commissions and fees, if purchased on the
open market or by negotiated transaction, (b) the average of the daily high and
low sales prices of the common stock as reported on the consolidated reporting
system of the New York Stock Exchange for the twenty trading days immediately
preceding the applicable investment date, less any applicable discount, if
purchased from us, or (c) for shares purchased under the request for waiver, the
average of the daily high and low sales prices of the common stock as reported
on the NYSE for the twelve trading days immediately preceding the applicable
waiver investment date. A trading date means a day on which trading in common
stock is reported on the NYSE. The closing price of the common stock on October
25, 2001, as shown on the New York Stock Exchange Consolidated Tape, was
$16.75 per share. This prospectus relates to 6,639,238 shares of common stock
offered for purchase under the plan.
These securities have not been approved or disapproved by the Securities and
Exchange Commission or any state securities commission nor has the Commission or
any state securities commission passed upon the accuracy or adequacy of this
prospectus. Any representation to the contrary is a criminal offense.
The date of this prospectus is September 1, 2000, as supplemented
October 26, 2001.
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TABLE OF CONTENTS
The Company 4 Sale of Shares 16
Where You Can Find More Information 4 Stock Certificates 16
Forward-Looking Statements 6 Certificate Safekeeping 16
Plan Administration 7 Transfer of Shares Held in the Plan 16
Common Questions about the Plan 7 Changing Your Plan Options 17
Plan Administrative Costs 10 Tax Consequences of Participation in the Plan 17
Plan Enrollment 10 Stock Splits, Stock Dividends and Rights Offerings 17
Employee Enrollment 11 Voting Rights 18
Dividend Reinvestment Options 12 Limitations on Liability 18
Optional Cash Investment 12 Changes to the Plan 18
Refunds of Initial Investments and Use of Proceeds 18
Optional Cash Purchasers 13 Plan of Distribution and Underwriters 18
Request for Waiver 13 Experts 19
Returned Checks 14 Legal Opinions 19
Purchase of Shares 15 No Other Representations 19
Automatic Electronic Investment 15
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THE COMPANY
Western Resources, Inc. is a publicly-traded consumer services company
with its principal executive offices at 818 South Kansas Avenue, Topeka, Kansas
66612 (telephone: 785-575-6300). Our primary business activities are providing
electric generation, transmission and distribution services to approximately
636,000 customers in Kansas and providing monitored services to approximately
1.4 million customers in North America and Europe. Rate regulated electric
service is provided by KPL, a division of the company, and Kansas Gas and
Electric Company, a wholly owned subsidiary. Monitored services in North America
are provided by Protection One, Inc., a publicly traded, approximately 85%-owned
subsidiary. Monitored services in Europe are provided by subsidiaries of Westar
Industries, Inc., a wholly owned subsidiary. KGE owns 47% of Wolf Creek Nuclear
Operating Corporation, the operating company for Wolf Creek Generating Station.
In addition, through our 45% ownership interest in ONEOK, Inc., natural gas
transmission and distribution services are provided to approximately 1.4 million
customers in Oklahoma and Kansas. Our investments in Protection One and ONEOK
are owned by Westar Industries.
On November 8, 2000, we entered into an agreement under which Public
Service Company of New Mexico (PNM) is to acquire our electric utility
businesses in a stock-for-stock transaction. Under the terms of the agreement,
both PNM and we are to become subsidiaries of a new holding company, subject to
customary closing conditions including regulatory and shareholder approvals. PNM
has filed a lawsuit in the Supreme Court of the State of New York seeking, among
other things, declaratory judgment that PNM is not obligated to proceed to close
the transaction because of orders issued by the Kansas Corporation Commission
which PNM believes constitute a material adverse effect and make certain
conditions precedent to closing incapable of satisfaction. No assurance can be
given as to whether or when the PNM transaction may occur. For further
information, see the documents filed by us with the SEC and incorporated herein
by reference.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and special reports, proxy statements and
other information with the SEC under the Securities Exchange Act of 1934, as
amended. The Exchange Act file number for our SEC filings is 1-3523. You may
read and copy any document we file at the following SEC public reference rooms:
Judiciary Plaza 500 West Madison Street 7 World Trade Center
450 Fifth Street, N.W. 14th Floor Suite 1300
Room 1024 Chicago, Illinois 60661 New York, New York 10048
Washington, D.C. 20549
You may obtain information on the operation of the public reference
room in Washington, D.C. by calling the SEC at 1-800-SEC-0330.
We file information electronically with the SEC. Our SEC filings are
available from the SEC's Internet site at http://www.sec.gov, which contains
reports, proxy and information statements, and other information regarding
issuers that file electronically. We maintain an Internet site at
http://www.wr.com, which also contains the documents we file electronically with
the SEC.
Our annual, quarterly and special reports, proxy statements and other
information may also be inspected at the office of the New York Stock Exchange,
20 Broad Street, New York, New York 10005, on which certain of our securities
are traded.
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The SEC allows us to "incorporate by reference" certain documents we
file with it, which means that we can disclose important information to you by
referring you to those documents. The information in the documents incorporated
by reference is considered a part of this prospectus, and information in the
documents that we file later with the SEC will automatically update and
supersede this information. We incorporate by reference the documents listed
below and any future filings we will make with the SEC under Sections 13(a),
13(c), 14 or 15(d) of the Exchange Act until we sell all the common stock. We
expressly exclude from such incorporation the report of the Compensation
Committee and the performance graph contained in any proxy statement filed by us
subsequent to the date of this prospectus.
o our Annual Report on Form 10-K for the year ended December 31,
2000
o our Quarterly Reports on Form 10-Q for the quarters ended March
31, 2001 and June 30, 2001
o our Current Reports on Form 8-K filed May 2, 2001, May 23, 2001,
July 24, 2001, July 26, 2001, October 16, 2001 and October 26,
2001
o the description of our common stock contained in item 7 of our
Quarterly Report on Form 10-Q for the quarter ended March 31,
1979
We will provide a copy of the documents we incorporate by reference,
other than exhibits to such documents, unless such exhibits are specifically
incorporated by reference in such documents, at no cost, to any person who
receives this prospectus, including any beneficial owner. To request a copy of
any or all of these documents, you should write or telephone us at the following
address and telephone number:
Western Resources, Inc.
818 South Kansas Avenue
Topeka, Kansas 66612
Attention: Investor Relations
Telephone No.: (785) 575-6379
You should rely only on the information incorporated by reference or
provided in this prospectus or any prospectus supplement. We have not authorized
anyone else to provide you with different information. We are not making an
offer of the common stock in any state where the offer is not permitted. You
should not assume that the information in this prospectus or any prospectus
supplement is accurate as of any date other than the date on the front of those
documents.
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FORWARD-LOOKING STATEMENTS
This document includes and incorporates "forward-looking statements"
intended to qualify for the safe harbors from liability established by the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements can generally be identified by the context of the statement and will
include words such as we "believe," "anticipate," "expect" or words of similar
import. Similarly, statements that describe our future plans, objectives or
goals are also forward-looking statements. Such statements address future events
and conditions concerning capital expenditures, earnings, liquidity and capital
resources, litigation, rate and other regulatory matters, possible corporate
restructurings, mergers, acquisitions, dispositions, including the proposed
separation of Westar Industries, Inc. from our electric utility businesses and
the consummation of the acquisition of our electric operations by Public Service
Company of New Mexico, compliance with debt covenants, changes in accounting
requirements and other accounting matters, interest and dividends, Protection
One's financial condition and its impact on our consolidated results,
environmental matters, changing weather, nuclear operations, ability to enter
new markets successfully and capitalize on growth opportunities in nonregulated
businesses, events in foreign markets in which investments have been made, and
the overall economy of our service area. What happens in each case could vary
materially from what we expect because of such things as electric utility
deregulation; ongoing municipal, state and federal activities, such as the
Wichita municipalization efforts; future economic conditions; legislative and
regulatory developments; competitive markets; and other circumstances affecting
anticipated operations, sales and costs.
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WESTERN RESOURCES, INC.
DIRECT STOCK PURCHASE PLAN
Plan Administration
We administer the plan through our Shareholder Services Department,
which keeps records and sends statements of account activity to all
participants. However, we may appoint someone else to administer the plan. If we
do, we will notify you. An independent agent, selected by us, buys and sells
shares on the open market on your behalf. The agent will have full discretion as
to all matters regarding open market purchases and sales of shares. The agent's
objective is to obtain the best overall price of shares purchased and sold.
Each participant in the plan will have a separate account. Shares of
common stock purchased for the account of each participant will be registered in
the name of the administrator for participants in the plan.
All inquiries and instructions concerning the plan should be directed
to:
Western Resources, Inc.
Shareholder Services
P.O. Box 750320
Topeka, Kansas 66675-0320
You may call us between 8:30 A.M. and 4:30 P.M., central time, at:
Toll-free 1-800-527-2495
Local (785) 575-6394
Fax (785) 575-1796
Internet: http://www.wr.com
E-mail: sharsvcs@wr.com
(include E-mail return address)
Please include your shareholder account number and taxpayer
identification number (social security number) on all checks and money orders
and on all correspondence, as well as a daytime telephone number where you may
be contacted during normal working hours.
Common Questions About The Plan
As you review this prospectus, you will notice that this plan offers a
convenient and economical way to increase your ownership of our common stock.
The plan also allows a convenient way for you to keep shares with us under a
custodial (safekeeping) agreement. Below are some questions and answers about
the key features of our Direct Stock Purchase Plan.
1. WHO IS ELIGIBLE TO PARTICIPATE IN THE PLAN?
Any owner of our common stock. Persons that do not own shares of our
common stock may participate by making an initial investment.
2. DO I HAVE TO REINVEST ALL THE DIVIDENDS ON MY COMMON STOCK IF I
PARTICIPATE IN THE PLAN?
No. You may reinvest all, part or none of your common stock dividends.
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3. MAY I PURCHASE ADDITIONAL SHARES OF COMMON STOCK THROUGH THE PLAN FROM
TIME TO TIME?
Yes. You may invest up to $10,000 in additional shares of common stock
in any month. The minimum investment is $50. Investments in excess of $10,000
may be made with prior written consent from us.
4. MAY I DEPOSIT MY COMMON STOCK IN THE PLAN?
You may deposit, free of any service charges, your common stock to be
held by us in the plan.
5. WILL MY DIVIDENDS AND OPTIONAL CASH INVESTMENTS BE FULLY INVESTED IN
COMMON STOCK?
Yes. Both dividends and optional cash investments will be used in full
to purchase additional common stock. As a result, your plan account will be
credited with whole shares and a fractional shares. However, if you close your
plan account, any fractional share will be paid out to you in cash.
6. HOW ARE SHARES PURCHASED FOR MY PLAN ACCOUNT?
At our option, shares for your plan account are purchased either on the
open market, in privately negotiated transactions or directly from us.
7. HOW IS THE PRICE OF SHARES BOUGHT OR SOLD DETERMINED?
The price of shares is determined differently based upon whether such
shares are bought in the open market, bought directly from us or are being sold.
SHARES BOUGHT ON THE OPEN MARKET
For shares bought on the open market, the price will be calculated as
the weighted average price of all shares bought for the investment date. The
price will include any brokerage commission and fees.
SHARES BOUGHT DIRECTLY FROM WESTERN RESOURCES
For shares bought directly from us, the price will be the average of
the daily high and low sale prices of our common stock as reported on the
consolidated reporting system on the NYSE for the twenty trading days
immediately preceeding the applicable investment date. If a discount is offered,
the price is reduced by the discount. The discount, currently 3%, may vary
between 0 and 10%, and will be established by us after a review of current
market conditions, the level of participation and current and projected capital
needs. There are no brokerage commissions or fees when shares are purchased from
us.
The price of common stock purchased from us under the request for
waiver will be the average of the daily high and low sales prices of the common
stock as reported on the NYSE for the twelve trading days immediately preceding
a waiver investment date, less the applicable discount.
SHARES SOLD
For shares sold, the price will be calculated as the weighted average
price of all plan shares sold on the sale date. The price will include any
brokerage commission and fees.
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8. WHEN ARE DIVIDENDS REINVESTED?
We reinvest dividends on each dividend payment date. For our common
stock, the dividend payment dates are the first business days of January, April,
July and October.
9. WHEN ARE OPTIONAL CASH INVESTMENTS CREDITED TO MY PLAN ACCOUNT?
Optional cash investments are credited to your plan account on the day
the investment is received by Shareholder Services. We will not pay interest on
any optional cash investment amounts received and held for investment under the
plan.
10. ARE THERE BROKERAGE COMMISSIONS AND FEES FOR BUYING OR SELLING SHARES
THROUGH THE PLAN?
Yes. Brokerage commissions and fees are charged on shares bought or
sold in the open market. These fees are based on the number of shares bought or
sold and the price per share. Currently, brokerage commissions and fees are
expected to be no more than 5 cents per share for purchases and approximately
7.5 cents per share for sales. There are no commissions or fees when the plan
buys shares directly from us.
11. ARE THERE ANY OTHER FEES FOR BUYING AND SELLING SHARES THROUGH THE
PLAN?
There are no fees for shares purchased through the plan. A transaction
fee of $5.00 will be charged for the sale of shares through the plan. The fee
will be deducted from the sale proceeds prior to forwarding to you. The fee will
be waived for employees and total account liquidations of ten shares or less.
12. WHEN WILL I RECEIVE AN ACCOUNT STATEMENT?
We will send you a statement for every month in which there is activity
in your plan account. Activity in your plan account includes when:
- we reinvest a dividend for you,
- you remit an optional cash investment,
- you deposit shares under the safekeeping feature of the plan,
- you withdraw or transfer shares, or
- you terminate your participation.
PLEASE KEEP YOUR STATEMENTS. YOU WILL NEED THEM FOR TAX PURPOSES.
13. MAY I TRANSFER SHARES FROM ONE ACCOUNT TO ANOTHER?
Yes. We will send the required instructions upon request.
14. WILL YOU ISSUE A STOCK CERTIFICIATE FOR THE SHARES IN MY ACCOUNT?
All shares purchased for you through the plan will be held by the
custodian for you. You may request a stock certificate at any time by sending us
a written request. We do not issue a certificate for a fractional share.
15. IF MY SHARES ARE HELD IN "STREET NAME" BY A STOCKBROKER, MAY I
PARTICIPATE IN THE PLAN?
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Yes. You may request your broker to participate on your behalf either
by reinvesting dividends or by making optional cash investments.
Alternatively, you may ask your broker to transfer shares into your
name so you can participate directly with us and take advantage of all the plan
features.
Different brokers have different conditions and procedures for
participating in the plan on your behalf or for transferring shares into your
name. You should contact your broker if you have questions about this.
16. ARE YOUR DIVIDENDS TAXABLE INCOME?
Yes. Dividends are taxable income whether reinvested or paid in cash.
We will send you an IRS Form 1099-DIV each January showing your dividend income
for the previous year.
17. MAY I RECEIVE DIVIDENDS IN CASH FOR SHARES I HOLD IN STOCK CERTIFICATE
FORM?
Yes. You do not have to reinvest dividends on shares you hold in
certificate form.
18. MAY I RECEIVE DIVIDENDS IN CASH FOR SHARES HELD IN MY PLAN ACCOUNT?
Yes. You are not required to reinvest dividends on the shares held in
your plan account.
19. IS INTEREST PAID ON ANY CASH HELD BY THE PLAN PRIOR TO INVESTMENT?
No. We do not pay interest on any funds held by us prior to investment
in additional common stock.
20. MAY I DETERMINE AT WHAT PRICE SHARES ARE BOUGHT AND SOLD ON MY BEHALF?
No. You will have no control over the price at which stock is bought
whether on the open market or from us. Likewise, you will have no control over
the price at which shares are sold by the independent agent. You will bear the
market risk associated with fluctuations in the price of our common stock.
21. MAY I ASK TO HAVE MY MONEY RETURNED?
Yes. If you have sent money for an optional cash investment, that money
can be returned to you if we receive a written request no later than three
business days prior to the investment date following receipt of your payment.
Plan Administrative Costs
We pay the administrative costs of participating in the plan. You will
pay a brokerage commission when the common stock is bought or sold on the open
market. When the plan buys the common stock directly from us, you pay no
brokerage commission. There is a $5.00 transaction fee when selling shares on
your behalf through the plan. The fee is waived for employees and total account
liquidations of ten shares or less.
Plan Enrollment
If you currently are a shareholder of record, you may enroll in the
plan at any time by completing and returning an enrollment form. Requests for
such forms should be directed to us, by telephone, in writing or e-mail.
By Mail: By Telephone or Fax: By E-mail:
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Western Resources, Inc. Toll-free: 1-800-527-2495 sharsvcs@wr.com
Shareholder Services Fax: 785-575-1796
P.O. Box 750320
Topeka, Kansas 66675-0320
If you are not a shareholder of record, you may join the plan by
completing and returning an enrollment form together with an initial payment of
not less than the amount specified in the enrollment form and not more than
$10,000 per month, unless granted a request for waiver, which will be used to
purchase common stock for your account. The $10,000 maximum may be waived by us
by prior written request.
A beneficial owner may participate in the plan by either transferring
shares to their name or making arrangements with their broker, bank or nominee
to participate in the plan on the participant's behalf. A beneficial owner is a
shareholder whose shares of common stock are registered in a name other than his
or her name, for example, in the name of a broker, bank or other nominee.
Beneficial owners must instruct the broker, bank or nominee who holds their
shares to participate in the plan on their behalf. If a broker, bank or nominee
holds shares of a beneficial owner through a securities depository, the broker,
bank or nominee will be required to provide a broker and nominee form to us in
order to participate in the optional cash investment portion of the plan.
Purchases of common stock for your account are made as soon as
practicable after receipt of your investment, and in no event later than 35 days
after receipt, provided that it is received by us at least three business days
prior to an investment date. For months in which a dividend is paid, the
dividend payment date is an investment date. Other investment dates shall be
determined solely at our discretion, although it is expected that purchases for
plan participants will be made at least twice during each month, usually around
the 1st and 15th of the month. Purchases may be made over a period of several
days if purchased on the open market. All such purchases will be aggregated for
the investment date.
Enrollment forms with initial investments must be received by us at
least three business days prior to the investment date and are subject to review
by us. Interest is not paid on any payments received, and they do not earn
dividends prior to their investment. Therefore, it is to your benefit to mail
the payments so that they are received shortly, but not less than three business
days, before an investment date.
All initial investments must be made by check for U.S. dollars, drawn
on a U.S. bank and payable to "Western Resources," and are subject to collection
by us for the full face value in U.S. funds. As soon as practicable after
completion of your initial investment, we will mail to you a statement notifying
you of the establishment of your account and setting forth the details of such
investment. Receipt of such statement serves as notification of your enrollment
in the plan. Other forms of payment, such as wire transfers, may be made, but
only if approved in advance by us. Inquiries about other forms of payment should
be directed to us at the address listed on page 7.
Employee Enrollment
Any employee of ours or any of our subsidiaries, as selected from time
to time by us, may join the plan at any time either by completing the employee
enrollment form and returning it to Shareholder Services, or by enrolling in the
same manner as any other eligible person described under plan enrollment. The
$250 and $50 minimums for initial investments and optional cash investments,
respectively, will not apply to payments made through payroll deductions.
The employee enrollment form allows participating employees to decide
the dollar amount, if any, to be deducted from their paychecks for each pay
period. Any deductions will be used to purchase full and fractional shares of
our common stock. The employee enrollment form allows an employee to choose a
reinvestment option for participation in the plan.
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Payroll deduction authorizations will remain in effect until canceled
by the employee. The employee must specify the amount to be withheld each month.
The minimum deduction per pay period is $10. Payroll deductions will be invested
at the next investment period provided an authorization is received at least
five business days before the investment date.
Dividend Reinvestment Options
The enrollment form allows you to choose a reinvestment option for
participation in the plan. If not specified otherwise, the account will be
enrolled for full dividend reinvestment. By choosing the appropriate box, you
may select:
o Full Dividend Reinvestment -- Reinvest all cash dividends on all
certificated shares held by you and on all book-entry shares credited to
your plan account. Optional cash investments may be made at any time.
o Partial Dividend Reinvestment -- Receive cash dividends on a specified
number of your shares of common stock and reinvest the cash dividends on
the remainder of your shares. The shares specified to receive cash
dividends may be made up of a combination of certificate and book-entry
shares credited to your account. You may elect to have cash dividend
payments not reinvested paid by check or through electronic direct
deposit. Optional cash investments may be made at any time.
o Optional Cash Investments Only -- Receive cash dividends on all shares
credited to your account, certificated shares held by you and book-entry
shares held by the plan for you. Optional cash investments may be made at
any time.
If you participate in the plan's dividend reinvestment option,
reinvestment will commence with the first dividend payable after the dividend
record date following your enrollment. Dividend record dates are publicly
announced by us, and are generally the 9th day of March, June, September, and
December.
On each applicable investment date, we will promptly, after deducting
withholding taxes, if any, commingle and pay over to the administrator all cash
dividends payable on shares held in the plan for all participants who are
reinvesting their dividends. These dividends will be used to purchase shares of
common stock, which will be held by the administrator. We will credit the
proportionate number of shares (computed to four decimal places without
rounding) purchased to each participant's account.
Optional Cash Investment
Once you are enrolled in the plan, you may purchase additional shares
using the plan's optional cash investment feature. Purchases must be made in
amounts of not less than $50, nor more than $10,000 per month, inclusive of your
initial investment. Optional cash investments may be made in excess of $10,000
if you request a waiver from us.
A broker, bank or nominee must use the broker and nominee form to make
optional cash investments if the shares are held in the name of a securities
depository. A broker and nominee form must accompany each optional cash
investment made by the broker, bank or nominee holding shares on behalf of a
beneficial owner in the name of a securities depository. The broker and nominee
form will be furnished by us upon request.
We will invest your payment on the next investment date, provided it is
received at least three business days prior to that investment date. Your
payment will be commingled with those of other participants and applied to the
purchase of additional shares of common stock, which will be held in the plan.
As is the case with initial investments, we will not pay interest on
any optional cash investment amounts received and held for investment under the
plan and payments do not earn dividends prior to their investment. Therefore, it
is to your benefit to mail an optional cash investment so that we receive it
shortly, but not less than three
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business days, before an investment date. To receive dividends, an optional cash
investment must be received and invested on an investment date prior to the
record date.
All optional cash investments must be made by check for U.S. dollars,
drawn on a U.S. bank and payable to "Western Resources," and are subject to
collection by us for the full face value in U.S. funds. Other forms of payment,
such as will transfers, may be made if approved in advance by us. You may
contact us regarding other forms of payments at the address listed on page 7.
CASH AND THIRD PARTY CHECKS ARE NOT ALLOWED.
For optional cash investments made pursuant to a request for waiver,
good and clear funds must be received by us prior to the first day of the
pricing period.
Refunds of Initial Investments and Optional Cash Purchases
Upon written request, we will refund your initial investment or any
optional cash investment payments, provided your request is received by us at
least three business days prior to the investment date following receipt of your
payment. However, no refund will be made until the funds have been actually
received by us.
Request for Waiver
Optional cash investments made pursuant to a request for waiver are not
subject to any predetermined maximum limit. We may establish each month a waiver
discount for optional cash investments in excess of the $10,000 made pursuant to
a request for waiver. The waiver discount, which may vary each month between 0%
and 10%, will be established by us after a review of current market conditions,
the level of participation and current and projected capital needs. The waiver
discount may vary from the discount offered to reinvested dividends and optional
cash investments that do not exceed the $10,000 per month maximum.
For purposes of the maximum optional cash investment limitation, we may
aggregate all optional cash investments for participants with more than one
account using a social security or tax identification number. Unless we
determine that reinvestment of dividends and optional cash investments for each
such account would be consistent with the purposes of the plan, we will have the
right to aggregate all such accounts and return, without interest, any amounts
in excess of the investment limitations applicable to a single account in
respect of all such accounts. Participants that are unable to supply a social
security or tax identification number may be limited to only one plan account.
All plan accounts we believe to be under common control or management or to have
common ultimate beneficial ownership may be aggregated.
Optional cash investments in excess of $10,000 per month may be made
only pursuant to a request for waiver accepted by us. Participants who wish to
submit an optional cash investment in excess of $10,000 for any waiver
investment date must obtain the prior written approval of us and a copy of such
written approval must accompany any such optional cash investment. One waiver
investment date will occur each month, usually on the last business day of the
month, although we shall determine the timing of the waiver investment date.
Appendix I provides information regarding pricing periods and investment dates.
A request for waiver should be directed to us via facsimile at (785) 575-1796.
We have sole discretion to grant any approval for optional cash investments in
excess of the allowable maximum amount.
In deciding whether to approve a request for waiver, we will consider
relevant factors including, but not limited to, whether the plan is then
acquiring newly issued shares of common stock or acquiring shares through open
market purchases or privately negotiated transactions, our need for additional
funds, the attractiveness of obtaining such funds through the sale of common
stock under the plan in comparison to other sources of funds, the purchase price
likely to apply to any sale of common stock under the plan, the participant
submitting the request, including the participant's prior participation in the
plan and the number of shares of common stock held of record by the participant
and the aggregate amount of optional cash investments in excess of $10,000 for
which request for waiver have been submitted by all participants. If requests
for waiver are submitted for any investment date for an aggregate amount in
excess of the amount we are willing to accept, we may honor such requests in
order of receipt, pro rata, or by any other method we determine is appropriate.
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Waiver Discount. Each month, at least three business days prior to the
first day of an applicable pricing period, we may establish a discount from the
market price applicable to optional cash investments made pursuant to a request
for waiver. The discount may be between 0% and 10% of the purchase price and may
vary each month, but once established will apply uniformly to all optional cash
investments made pursuant to a request for waiver for that month. The waiver
discount will be established in our discretion after a review of current market
conditions, the level of participation in the plan and current and projected
capital needs. Participants may obtain the waiver discount applicable to the
next pricing period by telephoning us at (785) 575-8330. Setting a waiver
discount for a particular month shall not affect the setting of a waiver
discount for any subsequent month. The waiver discount will apply to the entire
optional cash investment and not just the portion of such investment that
exceeds $10,000. The waiver discount will apply to optional cash investments of
$10,000 or more made pursuant to the request for waiver.
Threshold Price. We may establish for any pricing period a minimum
price as the threshold price applicable to optional cash investments made
pursuant to requests for waiver. At least three business days prior to the first
day of the applicable pricing period, we will determine whether to establish a
threshold price, and if a threshold price is established, its amount. This
determination will be made by us in our discretion after a review of current
market conditions, the level of participation in the plan and current and
projected capital needs.
The threshold price, if established, will be stated as a dollar amount
that the average of the high and low sale prices of the common stock on the NYSE
for each trading day of the relevant pricing period must equal or exceed. If the
threshold price is not satisfied for a trading day in the pricing period, then
that trading day will be excluded from the pricing period and all trading prices
for that day will be excluded from the determination of the purchase price. A
day will also be excluded if no trades of common stock are made on the NYSE for
that day.
In addition, a portion of the optional cash investments will be
returned for each trading day of the pricing period in which the threshold
pricing is not satisfied, or for each day in which no trades are reported on the
NYSE. The returned amount will equal one-twelfth of the total amount of the
optional cash investment amount for each trading day the threshold pricing is
not satisfied.
The establishment of the threshold pricing and the possible return of
the investment applies only to the optional cash investments made pursuant to
the request for waiver. Setting a threshold price for a pricing period shall not
affect the setting of a threshold price for any particular month. We are not
required to provide written notice to participants of the threshold price for
any subsequent pricing period. We may waive the setting of a threshold price for
any pricing period. Participants may find out if a threshold price has been set
or waived for any pricing period by contacting us at (785) 575-8330.
Any person who acquires shares of common stock through the plan and
resells them shortly before or after acquiring them may be considered to be an
underwriter within the meaning of the Securities Act of 1933, as amended. We
expect that certain persons will acquire shares of common stock utilizing the
request for waiver and resell those shares in order to obtain the financial
benefit of any waiver discount then offered under the plan. We have no
arrangement or understanding, formal or informal, with any person relating to a
distribution of shares to be purchased pursuant to the plan.
Returned Checks
In the event that any check is returned unpaid for any reason, we will
consider the request for investment of such funds null and void. We shall be
entitled to remove from the participant's account any shares purchased upon the
prior credit of such funds. We shall thereupon be entitled to sell those shares
to satisfy any uncollected amount. If the net proceeds of such sale are
insufficient to satisfy the balance of such uncollected amount, we will, in
addition to any other rights we may have, be entitled to sell such additional
shares from the participant's account as necessary to satisfy the uncollected
balance.
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Purchase of Shares
Shares may be purchased for the plan from us, to the extent we make
such shares available, from any securities exchange where common stock is
traded, in the over-the-counter market, or by negotiated transactions.
We may commingle each participant's funds with those of other
participants for the purpose of executing purchases. Neither we nor any
affiliated purchasers will exercise any direct or indirect control or influence
over the times when or prices at which the independent agent may make open
market purchases of common stock for the plan, or the amounts of shares to be
purchased.
The price that you will pay for any shares purchased will be either (a)
the weighted average cost of all shares purchased for the applicable investment
date, which cost includes brokerage commissions of approximately $.05 per share,
if purchased on the open market or by negotiated transaction, (b) the average of
the daily high and low sales prices of the common stock as reported on the
consolidated reporting system on the NYSE for the twenty trading days
immediately preceeding the applicable investment date, if the shares are
purchased from us, or (c) for shares purchased under the request for waiver, the
average of the daily high and low sales prices of the common stock as reported
on the NYSE for the twelve trading days immediately preceding the applicable
waiver investment date, less any applicable discount.
The discount, currently 3%, may vary between 0 and 10%, and will be
established by us after a review of current market conditions, the level of
participation and current and projected capital needs.
Under the plan, you do not have the ability to order the purchase of a
specific number of shares, the purchase of shares at a specified price or a
particular date of purchase, as could be done with respect to purchases through
a broker.
A statement will be mailed each quarter indicating, among other things,
the amount invested, the average cost per share, and the number of shares
purchased.
Automatic Electronic Investment
You may make optional cash investments by means of automatic electronic
investments of not less than $35, nor more than the monthly limit of $10,000, by
monthly electronic funds transfers from a predesignated U.S. account. Automatic
electronic investments may be made from accounts at any bank, savings
association, credit union or other financial institution that is a member of the
National Automated Clearing House Association (NACHA).
To initiate automatic electronic investments, you must complete and
sign the automatic electronic investment authorization found on the enrollment
form and return it to us together with a voided blank check or deposit slip for
the account from which funds are to be drawn. Forms will be processed and will
become effective as promptly as practicable. To be effective with respect to a
particular investment date, however, the automatic electronic investment
authorization must be received by us at least three business days preceding the
date for electronic transfer of funds.
Once automatic electronic investment is initiated, funds will be drawn
from your designated account on the date specified on the enrollment form,
generally the 10th of each month (or, if the 10th day is not a business day, the
first business day thereafter), and will be invested in common stock during the
next investment period following the date of such draft.
You may change the amounts of your future automatic electronic
investments by completing and submitting to us a new enrollment form. You may
terminate your automatic electronic investments by notifying us in writing.
Electronic direct deposit of cash dividends that participants elect to
receive also is available through the plan.
-15-
Sale of Shares
You can sell all or part of your shares held in the plan by furnishing
us with written instructions, signed by all registered holders. You may sell
only whole shares, not fractional shares, if the sale is for less than all of
the shares in your account. We cannot, however, sell for you any certificated
shares that you may be holding unless they are first deposited into the plan
pursuant to Certificate Safekeeping.
Sales for plan participants are made as soon as practicable after we
receive written instructions from the participant. Requests to sell plan shares
will be aggregated and processed at least once a week. Shares will be sold on
the open market at prevailing market prices.
When you sell your shares, the price per share that you will receive is
the average of the proceeds from all shares sold, less your proportionate share
of the brokerage commission of approximately 7.5 cents per share, transfer
taxes, if any, and withholding tax, if any. Under the plan, you do not have the
ability to sell your shares at a specified price or on a particular date, as
could be done with respect to sales through a broker. There is a $5.00
transaction fee for selling shares through the plan. The fee is waived for
employees and total account liquidations of ten shares or less.
With respect to the sale of fractional shares if your entire plan
account is terminated, we will pay cash to you in an amount determined in the
same manner as provided with respect to the sale of full shares.
Stock Certificates
All shares purchased on your behalf through the plan will be held in
the plan in book-entry form. You can, however, at any time and without charge,
obtain a certificate for all or part of the full shares credited to your plan
account by making a request in writing to us.
Shares credited to your plan account may not be pledged as collateral.
If you wish to pledge shares held in your plan account, you must request that we
issue a certificate for a designated number of shares.
Certificate Safekeeping
The plan's Certificate Safekeeping allows you to deposit into the plan
common stock certificates held by you for safekeeping. The advantages of
Certificate Safekeeping are:
o The risk associated with the loss of your stock certificates is
eliminated. If your certificates are lost or stolen, you cannot sell or
transfer them without first obtaining replacement certificates. This
process could take several weeks and will result in cost and paperwork,
both for you and for us.
o Certificates deposited with the plan are treated in the same manner as
shares purchased through the plan, and may be conveniently sold or
transferred through the plan.
To participate in Certificate Safekeeping, you must complete and return
an enrollment form along with common stock certificates you wish to deposit. You
can obtain an enrollment form by calling or writing our Shareholder Services
Department at the address shown on page 7. If you have lost any of your
certificates, they must be replaced before you can participate in Certificate
Safekeeping.
Transfer of Shares Held in the Plan
You may change the ownership of all or part of your plan shares through
a gift, a private sale or otherwise by mailing to us a properly executed stock
assignment form (which you can obtain from us or a financial institution), a
signature guarantee, and a letter of instruction.
-16-
Unless instructed otherwise, we will retain the shares, and enroll the
transferee in 100% dividend reinvestment, provided they are eligible to
participate. The new participant will receive a statement showing the number of
shares thus transferred and now held in his or her plan account.
Changing Your Plan Options
You can change the elections you have made under the plan at any time
by providing written notice to us. We will accept notice from only you or a
person duly authorized by you in writing to act on your behalf. Changes in
elections will be processed in the same manner and be effective as new
enrollments.
You may cease the reinvestment of your dividends and elect to receive
them, instead, by check or electronic direct deposit. You may continue to hold
your shares in book-entry and receive a cash dividend. You may continue to buy
shares with optional cash investments or sell some, or all, of your shares, as
desired.
Your enrollment in the plan may be automatically terminated if you no
longer hold any shares of record and your plan shares total less than one full
share of common stock. Upon automatic termination, you will receive a check for
the proceeds from the sale of the fractional share, less brokerage commission,
transfer taxes, if any, and withholding tax, if any.
With respect to the sale of fractional shares, we will pay cash to you
in an amount determined in the same manner as provided with respect to the sale
of full shares.
Stock certificates and/or checks will be forwarded to only you or your
legal representative made out the same as your account registration.
Tax Consequences of Participation in the Plan
The amount of cash dividends paid by us is considered taxable income,
even though reinvested under the plan. The information return sent to you on
Form 1099-DIV and the IRS at year-end will show as dividend income the full
amount of dividends reinvested under the plan, as well as cash dividends paid
directly to you, if any, and the amount of any discount received for common
stock purchases. For U.S. Federal income tax purposes, the cost basis of shares
of common stock acquired through the plan on any given investment date will be
determined by dividing the total of the dividends reinvested net of taxes
withheld, if any, and your optional cash purchase, if any, by the number of
shares of common stock, including fractional shares, if any, acquired on your
behalf on that investment date. THESE STATEMENTS ARE YOUR CONTINUING RECORD OF
THE COST OF YOUR PURCHASES AND SHOULD BE RETAINED FOR TAX PURPOSES.
In the case of shareholders whose dividends are subject to U.S. Federal
income tax withholding, or backup withholding, we will reinvest dividends less
the amount of tax required to be withheld.
The sale of shares through the plan will be reported to the IRS and you
on Form 1099-B.
You should consult with your tax advisor for advice applicable to your
particular situation.
Stock Splits, Stock Dividends and Rights Offerings
Any dividends in the form of shares of stock and any shares resulting
from a stock split on shares held of record by the plan will be added
proportionately to your account. In the event that we make available to our
holders of common stock rights to subscribe to additional shares, debentures or
other securities, we will sell the rights received on shares held of record by
the plan and will invest the proceeds from the sale in additional shares of
common stock which will be credited proportionately to your account.
Participants wishing to be in a position to exercise such rights may withdraw
shares credited to their plan account as described under "Stock Certificates."
-17-
Voting Rights
A proxy card will be mailed to you representing the shares of common
stock held in your plan account combined with any other shares of common stock
that you may own of record. Shares credited to your account under the plan on
the record date for a vote of shareholders will be voted in accordance with your
instructions.
Limitations on Liability
Neither we nor our agents, employees, officers and directors shall be
liable for any act done in good faith or for any omission to act, including,
without limitation, any claims of liability (a) with respect to the prices at
which shares are purchased or sold for your account and the times when such
purchases or sales are made (provided, however, that nothing herein shall be
deemed to constitute a waiver of any rights that you might have under the
Securities Act of 1933 or other applicable federal securities laws), or (b) for
any fluctuation in the market value before or after purchase or sale of shares,
or (c) arising out of failure to terminate a participant's account upon the
participant's death prior to receipt of written evidence of such death.
Changes to the Plan
We reserve the right to amend, modify, suspend or terminate the plan at
any time. No such modification may, however, make it possible for any assets
held in the plan accounts to be used for any purpose other than the exclusive
benefit of the participants.
USE OF PROCEEDS
Since the requirements of plan participants may be satisfied by either
the issuance of new shares of common stock by us, or purchases of shares of
common stock in the open market, the number of shares of common stock, if any,
that we ultimately will sell under the plan, or the prices at which shares will
be sold, is not known. If shares are purchased in the open market, we will not
receive any proceeds. If purchases of common stock are made directly from us, we
intend to use the net proceeds for working capital, for retirement of debt and
for other general corporate purposes.
Any person who acquires shares of common stock through the plan and
resells them shortly before or after acquiring them may be considered to be an
underwriter within the meaning of the Securities Act of 1933, as amended. We
expect that certain persons will acquire shares of common stock utilizing the
request for waiver and resell those shares in order to obtain the financial
benefit of any waiver discount then offered under the plan. We have no
arrangement or understanding, formal or informal, with any person relating to a
distribution of shares to be received pursuant to the plan.
PLAN OF DISTRIBUTION AND UNDERWRITERS
Pursuant to the plan, we may be requested to approve optional cash
investments in excess of the allowable maximum amounts pursuant to requests for
waiver on behalf of participants that may be engaged in the securities business.
In deciding whether to approve such a request, we will consider relevant factors
including, but not limited to, whether the plan is then acquiring newly issued
shares of common stock or acquiring shares through open market purchases or
privately negotiated transactions, our need for additional funds, the
attractiveness of obtaining such funds by the sale of common stock under the
plan in comparison to other sources of funds, the purchase price likely to apply
to any sale of common stock, the participant submitting the request, including
the extent and nature of such participant's prior participation in the plan and
the number of shares of common stock held of record by such participant, and the
aggregate number of requests for waiver that have been submitted by all
participants. Persons who acquire shares of common stock through the plan and
resell them shortly after acquiring them, including coverage of short positions,
under certain circumstances, may be participating in a distribution of
securities that would require compliance with Regulation M under the Securities
Exchange Act of 1934 and may be considered to be underwriters
-18-
within the meaning of the Securities Act of 1933. We will not extend to any such
person any rights or privileges other than those to which it would be entitled
as a participant, nor will we enter into any agreement with any such person
regarding such person's purchase of such shares or any resale of distribution
thereof. We may, however, approve requests for optional cash investments by such
persons in excess of allowable maximum limitations. If such requests are
submitted for any investment date for an aggregate amount in excess of the
amount we are willing to accept, we may honor such requests in order of receipt,
pro rata or by any other method which we determine to be appropriate.
EXPERTS
The financial statements and schedules incorporated by reference in
this prospectus and elsewhere in the registration statement have been audited by
Arthur Andersen LLP, independent public accountants, as indicated in their
reports with respect thereto, and are included herein in reliance upon the
authority of said firm as experts in giving said reports.
LEGAL OPINIONS
Richard D. Terrill, Executive Vice President and General Counsel of
Western Resources, will issue an opinion regarding certain legal matters in
connection with the common stock offered hereby. At July 31, 2000, Mr. Terrill
owned directly and/or beneficially 5,456 shares of common stock and had been
granted pursuant to and subject to the terms of Western Resources' long-term
incentive and compensation programs, 60,900 performance shares and stock options
exercisable for 32,200 share of common stock.
NO OTHER REPRESENTATIONS
No person is authorized to give any information or to make any
representations other than those contained in this prospectus and, if given or
made, such information or representation must not be relied upon as having been
authorized. This prospectus does not constitute an offer to sell or a
solicitation of an offer to buy any securities other than the securities offered
by this prospectus or an offer to sell or a solicitation of an offer to buy such
securities in any jurisdiction or to any person to whom it is unlawful to make
such offer or solicitation in such jurisdiction. Neither the delivery of this
prospectus nor any sale made hereunder shall, under any circumstances, create
any implication that there has been no change in the affairs of Western
Resources since the date hereof, or that the information herein contained or
incorporated by reference is correct as of any time subsequent to the date
hereof.
-19-
APPENDIX I
WESTERN RESOURCES, INC.
REQUEST FOR WAIVER
OPTIONAL CASH INVESTMENTS SCHEDULE
Threshold Price Pricing Period
Waiver Discount Optional Cash Investment Commencement Investment
Set Date Due Date Date Date
----------------- ------------------------ ---------------- ----
October 10, 2001 October 12, 2001 October 15, 2001 October 31, 2001
November 7, 2001 November 9, 2001 November 13, 2001 November 30, 2001
December 7, 2001 December 11, 2001 December 12, 2001 December 31, 2001
January 9, 2002 January 11, 2002 January 14, 2002 January 31, 2002
February 6, 2002 February 8, 2002 February 11, 2002 February 28, 2002
March 7, 2002 March 11, 2002 March 12, 2002 March 28, 2002
April 9, 2002 April 11, 2002 April 12, 2002 April 30, 2002
May 9, 2002 May 13, 2002 May 14, 2002 May 31, 2002
June 7, 2002 June 11, 2002 June 12, 2002 June 28, 2002
July 10, 2002 July 12, 2002 July 15, 2002 July 31, 2002
August 9, 2002 August 13, 2002 August 14, 2002 August 30, 2002
September 9, 2002 September 11, 2002 September 12, 2002 September 30, 2002
October 10, 2002 October 14, 2002 October 15, 2002 October 31, 2002
November 6, 2002 November 8, 2002 November 12, 2002 November 29, 2002
December 9, 2002 December 11, 2002 December 12, 2002 December 31, 2002
January 9, 2003 January 13, 2003 January 14, 2003 January 31, 2003
February 6, 2003 February 10, 2003 February 11, 2003 February 28, 2003
March 10, 2003 March 12, 2003 March 13, 2003 March 31, 2003
April 8, 2003 April 10, 2003 April 11, 2003 April 30, 2003
May 8, 2003 May 12, 2003 May 13, 2003 May 30, 2003
June 9, 2003 June 11, 2003 June 12, 2003 June 30, 2003
July 10, 2003 July 14, 2003 July 15, 2003 July 31, 2003
August 8, 2003 August 12, 2003 August 13, 2003 August 29, 2003
September 9, 2003 September 11, 2003 September 12, 2003 September 30, 2003
WESTERN RESOURCES, INC.
DIRECT STOCK PURCHASE PLAN
PROSPECTUS
Dated September 1, 2000, as supplemented October 26, 2001
