Mercury NZ launches $300m capital bond offer
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The news: Electricity company Mercury NZ has launched a capital bond offer of up to NZD300 million ($276.3 million) to institutional investors and New Zealand retail investors.
The numbers: The offer of up to NZD300 million, which includes an option for Mercury to accept up to an additional NZD50 million in oversubscriptions, opens 24 June and is expected to close on 27 June.
The indicative margin range for the capital bonds to the first reset date of 11 July, 2029, is 2% to 2.15% per year, subject to a minimum annual interest rate of 6.15%.
The context: ASX- and NZX- listed Mercury, which announced the retirement of its CEO Vince Hawksworth earlier this month, said that there is no public pool for the offer, with all capital bonds reserved for clients of the offer's joint lead managers, NZX participants, and other approved financial intermediaries.
The electricity, gas, broadband and mobile services retailer, which is 51% owned by the New Zealand government, said that proceeds of the offer are intended to be applied to the repayment of existing debt and other general corporate purposes.
The source: ASX announcement
