Mercury considers capital bond offer

Mercury NZ Limited (Mercury) is considering making an offer (Offer) of up to $200 million (with the ability to accept oversubscriptions of up to an additional $50 million at Mercury's discretion) of unsecured, subordinated capital bonds (Capital Bonds) to institutional investors and New Zealand retail investors. It is expected that full details of the Offer will be released in the week commencing 2 May 2022, when the offer is expected to open. The Capital Bonds, if issued, are expected to be assigned an issue credit rating of BB+ by S&P Global Ratings. The proceeds of the Capital Bonds are intended to be used to refinance drawn debt relating to the Trustpower Retail acquisition and for general corporate purposes. Mercury has appointed Forsyth Barr Limited as Arranger and Joint Lead Manager, and Bank of New Zealand and Craigs Investment Partners as Joint Lead Managers in relation to the Offer. There will be no public pool for the Offer, with all of the Capital Bonds to be reserved for clients of the Joint Lead Managers, NZX participants and other financial intermediaries. Investors should contact a Joint Lead Manager or their usual financial adviser for further details on how they may be able to acquire Capital Bonds. No money is currently being sought and no Capital Bonds can be applied for or acquired until the Offer opens. If the proposed Offer is made, it will be in accordance with the Financial Markets Conduct Act 2013 as an offer of debt securities of the same class as Mercury's existing capital bonds quoted on the NZX Debt Market under the ticker code MCY020. The Capital Bonds are expected to be quoted on the NZX Debt Market. Joint Lead Managers: BNZ - 0800 284 017 Craigs Investment Partners Limited - 0800 226 263 Forsyth Barr Limited - 0800 367 227 ENDS Howard Thomas General Counsel and Company Secretary Mercury NZ Limited For investor relations queries, please contact: William Meek Chief Financial Officer 0275 173 470 For media queries, please contact: Shannon Goldstone Head of Communications Media phone: 027 210 5337 End CA:00390967 For:MCY Type:GENERAL Time:2022-04-26 08:31:08