S&P gives Mercury NZ bonds BB+

S&P said it gave a BB+ long-term issue rating to the planned subordinated capital bonds of up to NZ$250 million to be issued by Mercury NZ Ltd.

The bonds are rated three notches under Mercury NZ’s issuer rating to reflect the subordinated status and the optional deferability of coupon payments, the agency said.

Mercury NZ will use the proceeds to refinance its acquisition of Trustpower Retail (Trustpower) and for general corporate purposes.

“In our view, this hybrid issuance is in line with the company's capital management strategy of supporting its balance sheet while integrating Trustpower and Tilt Renewables, and completion of the southern Turitea windfarm development,” the agency said in a press release.

The outlook is stable.

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