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Mercury Launches Capital Bond Offer

23/06/2024, 20:30 Coordinated Universal Time, OFFER

Mercury NZ Limited (Mercury) confirmed today that it is offering 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. The offer opens today and is expected to close on 27 June 2024, with the Capital Bonds expected to be issued on 11 July 2024. The indicative margin range for the Capital Bonds to the First Reset Date (11 July 2029) is 2.00% to 2.15% per annum (subject to a minimum interest rate of 6.15% per annum). An announcement of the actual margin (which may be above or below the indicative margin range) and interest rate to the First Reset Date will be made following a bookbuild process, expected to be completed on 27 June 2024 and announced via NZX shortly thereafter. The Capital Bonds are expected to be rated BB+ by S&P Global Ratings. If the bookbuild for the offer is successful, Mercury will exercise its option to redeem its unsecured subordinated capital bonds which are quoted on the NZX Debt Market under the ticker MCY020 (MCY020 Bonds) on the first reset date for the MCY020 Bonds, being 11 July 2024. Trading in all MCY020 Bonds will be suspended from close of market on 26 June 2024. There is no public pool for the offer, with all of the Capital Bonds being reserved for clients of the Joint Lead Managers, NZX participants and other approved financial intermediaries. The offer is 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 Capital Bonds are expected to be quoted on the NZX Debt Market. Full details of the offer are contained in the indicative terms sheet, which is available at www.mercury.co.nz/capital-bonds or by contacting a Joint Lead Manager or your usual financial adviser. Copies of the indicative terms sheet and investor presentation have also been provided to NZX with this announcement. Joint Lead Managers BNZ - 0800 284 017 Craigs Investment Partners - 0800 226 263 Forsyth Barr - 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.co.nz For media queries, please contact: Shannon Goldstone Reputation and Social Impact Lead 027 210 5337 mercurycommunications@mercury.co.nz End CA:00433267 For:MCY Type:OFFER Time:2024-06-24 08:30:29