Mercury considers capital bond offer

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The Mercury Building, 33 Broadway, Newmarket 1023
PO Box 90399, Auckland 1142



mercury.co.nz







STOCK EXCHANGE LISTINGS: NZX (MCY) / ASX (MCY)

NEWS RELEASE

MERCURY CONSIDERS CAPITAL BOND OFFER

17 June 2024

Mercury NZ Limited (Mercury) is considering making an offer (Offer) of up to $300 million (with the ability to accept
up to an additional $50 million in oversubscriptions 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 24 June 2024, when the Offer is
expected to open.
Mercury has a corporate credit rating from S&P Global Ratings of BBB+ (stable outlook). The Capital Bonds are
expected to be assigned an issue credit rating of BB+.
If the Offer is made and the bookbuild is successful, Mercury intends to redeem its capital bonds which are quoted
on the NZX Debt Market under the ticker code MCY020 (MCY020 Bonds) on 11 July 2024 (being the first
scheduled reset date).
It is expected that trading in all MCY020 Bonds will be suspended from market close on 26 June 2024. Mercury will
communicate with all MCY020 bondholders directly to notify them of the potential redemption and the trading
suspension (a template letter is attached to this announcement).
Mercury has appointed Forsyth Barr Limited as Arranger and Joint Lead Manager, and Bank of New Zealand and
Craigs Investment Partners Limited as Joint Lead Managers in relation to the Offer.
If the Offer is made, all of the Capital Bonds will be reserved for clients of the Joint Lead Managers, NZX
participants and other approved financial intermediaries. There will be no public pool.
Investors (including MCY020 bondholders) can register their interest by contacting a Joint Lead Manager or their
usual financial adviser. Indications of interest will not constitute an obligation or commitment of any kind.
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 existing quoted debt securities. The Capital Bonds are expected to be quoted
on the NZX Debt Market.

Joint Lead Managers


0800 284 017 0800 226 263 0800 367 227

ENDS
Howard Thomas
General Counsel and Company Secretary
Mercury NZ Limited


For investor relations queries, please contact:
Paul Ruediger
Head of Business Performance & Investor Relations
027 517 3470
investor@mercury.conz
For media queries, please contact:
Shannon Goldstone
Reputation and Social Impact Lead
027 210 5337
mercurycommunications@mercury.co.nz


ABOUT MERCURY NZ LIMITED
Mercury generates electricity from 100% renewable sources: hydro, geothermal and wind. We are also a retailer of
electricity, gas, broadband and mobile services. We’re listed on the New Zealand Stock Exchange and the
Australian Stock Exchange with the ticker symbol ‘MCY’, with foreign exempt listed status. The New Zealand
Government holds a legislated minimum 51% shareholding in the Company.
Visit us at: www.mercury.co.nz

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MERCURY NZ LIMITEDMERCURY.CO.NZ
17 June 2024
Mercury NZ Limited Considers Capital Bond Offer.
Introduction.
We are writing to you as a holder of existing Mercury NZ Limited (Mercury) capital bonds which are quoted on
the NZX Debt Market under the ticker MCY020 (MCY020 Bonds). The terms and conditions applicable to your
MCY020 Bonds are set out in the Supplemental Trust Deed dated 12 June 2019 (Supplemental Trust Deed)
and Master Trust Deed originally dated 4 April 2003 (as amended from time to time). The Supplemental Trust
Deed and Master Trust Deed are available at mercury.co.nz/investors/bonds/capital-bonds-mcy020.
Mercury announced on 17 June 2024 that it is considering making an offer (Offer) of 30-year unsecured,
subordinated capital bonds (New Capital Bonds) to institutional investors and New Zealand retail investors.
It is expected that full details of the Offer will be released on 24 June 2024, when the Offer is expected
to open.
Redemption of MCY020 Bonds.
If the Offer is made and the bookbuild is successful, Mercury intends to exercise its option to redeem the
MCY020 Bonds on the “First Reset Date”, being 11 July 2024. The Supplemental Trust Deed will be amended to
allow the notice of redemption to be made via NZX on or about 27 June 2024.
Mercury would also email or, as applicable, courier post you a copy of the notice of redemption on the date of
NZX publication.
If the Offer is not made or the bookbuild is otherwise unsuccessful, Mercury will not exercise its option to
redeem the MCY020 Bonds on 11 July 2024.
Suspension of trading of MCY020 Bonds.
It is expected that trading in all MCY020 Bonds will be suspended from market close on 26 June 2024.
This suspension would cease if the bookbuild for the Offer was unsuccessful (and accordingly Mercury does not
elect to redeem the MCY020 Bonds).
DMT-1873 0624

MERCURY NZ LIMITEDMERCURY.CO.NZ
0800 284 0170800 226 2630800 367 227
Other information.
If the Offer is made, all of the New Capital Bonds will be reserved for clients of the Joint Lead Managers, NZX
participants and other financial intermediaries. There will be no public pool.
If you are interested in investing in the New Capital Bonds, you can register your interest in the Offer and
receive further information by contacting one of the Joint Lead Managers (Bank of New Zealand, Craigs
Investment Partners Limited and Forsyth Barr Limited) or your usual financial adviser. Indications of interest will
not constitute an obligation or commitment of any kind. No money is currently being sought and applications
for the New Capital Bonds cannot currently be made.
If the Offer is made, it will be made pursuant to the Financial Markets Conduct Act 2013 as an offer of debt
securities of the same class as existing quoted debt securities. The New Capital Bonds are expected to be
quoted on the NZX Debt Market.
Yours sincerely,
William Meek | Chief Financial Officer.

Joint Lead Managers.