Mercury MCY020 Reset

[Bjauck]

Seems a bit low grade to me.
unsecured subordinated, are not great descriptors despite the former being quite common and the latter usually has an ‘un’ in front of it.
however as Grimy says they are half govt owned and so, just like Air, there’d likely be support in some form or another.
and the rate is okay, though can you commit to a three decade long investment.

strikes me as pretty specialised

Just about all the other bonds ($4b) rank above on liquidation.
Shareholders ($4.8b) rank below
$0.35b other capital bonds have equal ranking to this issue.

It is up to an investor if they think the interest rate margin compensates for their position if there is a liquidation. At least any unpaid interest accumulates.

[Slartibartfast]

BB+ is below 'Investment Grade' - probably best to Google it.
However, with Mercury you have a strong company in the utility sector, which is 51% Government owned and hasn't (to my knowledge) ever defaulted.
It's a bond I think you could own and sleep pretty comfortably with.
If it goes ahead, I probably won't apply for the new bonds, but that is no reflection on the bonds or Mercury.

Belated thanks Grimy.

[Grimy]

It's official.
'Mercury is exercising its right to fully redeem the MCY020 Bonds, in accordance with the Trust Deed on the first reset date, 11 July 2024'.
The new bonds interest rate is set at 6.42%. The bonds will be issued on July 11, and the first reset date is July 11, 2029.