Summarised details of the bond offer are below:
Issuer: Mercury NZ Limited.
Description: Unsecured, subordinated, redeemable, cumulative, interest bearing debt securities.
Maturity Date: 11 July 2049 (with reset dates in between).
Issue Amount: Up to $300 million.
Interest Rate: Mercury has announced the indicative interest margin range for the Capital Bonds to the First Reset Date (11 July 2024) of 2.10% p.a. to 2.25% p.a. Subject to a minimum nominal interest rate for the period until the First Reset Date of 3.60% p.a.
Based on the swap rate on 12 June 2019 of 1.55% p.a. for the period until 11 July 2024, the indicative issue margin implies a nominal interest rate for the period until the First Reset Date of 3.65% to 3.80% p.a. Subject to the minimum rate for this period of 3.60% p.a.
Note this is an indication only. The actual nominal interest rate until the First Reset Date could be set higher, lower or within this indicative range, subject to the minimum. The actual nominal rate for the period until the First Reset Date is not expected to be known until after the bookbuild process on the Rate Set Date (19 June 2019).
Early Bird Interest on application moneys received (“Early Bird Interest”) will be paid by Mercury to investors in the Offer that receive an allocation of Capital Bonds, other than MCY010 Bondholders that elect to have their redemption proceeds for the MCY010 Bonds applied and set-off against application moneys payable for the Capital Bonds. Mercury will pay Early Bird Interest on application moneys received in respect of such allocated Capital Bonds, at the rate of 3% per annum. This interest will be paid for the period from (and including) the date on which application money is banked, to (but excluding) the Issue Date, unless the application money is returned for any reason. Early Bird Interest will be paid within five Business Days of the Issue Date.
The First Reset Date for the Capital Bonds is the date that is five years after the Issue Date (11 July 2024). Thereafter there is a further Reset Date every five years. As part of a Successful Election Process, a different Reset Date may be adopted.
Issue Price: $1.00 per bond.
Listing: MCY020
Credit rating: BBB+
Brokerage: No Brokerage.
Minimum Application: $5,000 and in multiples of $1,000 thereafter.
Important Dates
Opening Date: 12 June 2019
Closing Date: 04 July 2019
Rate Set Date: 19 June 2019
Issue & Allotment: 11 July 2019
Quotation -
If you wish to bid through us, you MUST read the Term Sheet and Other Documents and please advise your firm interest by no later than 5.00 P.M. Tuesday, 18th June 2019.
There is an application for this offer (which will be sent after you have received your allocation from Equity), so FIRM INTEREST must be emailed to Equity Investment Advisers (which will be legally binding). Reminder that NO brokerage is payable on this offer.
Please note that you MUST read the Term Sheet & Other Documents before deciding to invest.
Term Sheet
Launch Announcement
Roadshow Presentation
